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Schwab is buying back a chunk of its stock as TD sells its 10% stake - MarketWatch

1. TD Bank is selling its 10.1% stake in Schwab. 2. The sale involves 184.7 million shares through a secondary offering. 3. TD Bank plans to repurchase its own stock with proceeds. 4. Schwab's stock fell 3% post-announcement due to increased share availability. 5. Overall, TD's stake in Schwab reduced from 12.3% to 10.1%.

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FAQ

Why Bearish?

The increase in share supply from TD's sale typically depresses share prices. Historical examples show stock declines following major divestitures.

How important is it?

The sale and buyback strategy significantly influence TD and Schwab's valuations. Investors closely monitor stake changes for market insights.

Why Short Term?

The immediate reaction of Schwab's stock price suggests short-lived effects. Past examples, such as IPOs, illustrate similar short-term volatility.

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