Motley Fool Money How SEC's Proposed Rule Changes Could Affect Investors
Jun 9, 2022
Andy Cross, Chief Investment Officer at Motley Fool, shares vital insights on SEC rule changes affecting trading firms and their potential impact on individual investors. He highlights the looming threat to Robinhood's business model and discusses Five Below's unexpected financial struggles. Deidre Woollard, a Motley Fool analyst with expertise in homebuilding, elaborates on key metrics for evaluating builders amid rising costs and labor shortages, while also revealing stock ideas in the real estate sector.
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SEC Rule Changes Target PFOF
- The SEC proposes rule changes to increase competition among trading firms executing individual investor trades.
- This aims to address concerns about payment for order flow (PFOF) and protect investor interests.
Monitor SEC Rule Changes
- Monitor SEC rule changes regarding payment for order flow throughout the summer and fall.
- These changes could significantly impact Robinhood's business model and the future of free trading.
Five Below's Struggles
- Five Below, despite historically strong performance, has struggled recently due to inventory challenges and rising costs.
- The discount retailer cut its full-year guidance, signaling a challenging environment for consumers.