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Subject:  Re: Merrill Edge Date:  12/8/2018  3:10 PM
Author:  inparadise Number:  91039 of 95725

Do brokerage firms offer these bonuses
(a) in the hope of generating transaction and other fees?
(b) because they can make money on your holdings (if so, how?)
(c) some other reason?

Because there are so many synergies with Bank of America, which bought Merrill Lynch, I suspect that the bonuses are an attempt to woo customers back to branch banking and away from on line financial institutions. I asked this directly and the guy I was speaking with agreed that was part of it. He also commented that they were pretty flush with the change in corporate tax rate.

I was wondering if there was a push they were going to be making with the stock, that would look more attractive if they bumped up their numbers. As has been pointed out, $2500 bonus is only 0.25% on a million, and you have to keep your money there 9 months to get the bonus. So I suspect anything they are trying to do will be within 9 months from when they started this. And the bonuses have no expiration date other than when they decide they are done. Could be gone tomorrow.

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