Morgan Stanley to buy E-Trade for $13 billion

In this Oct. 18, 2011, file photo, the Morgan Stanley logo is displayed on its Times Square building, in New York. Morgan Stanley is buying online brokerage E-Trade in an all-stock deal valued at about $13 billion. In the all-stock deal announced Thursday, Feb. 20, 2020, E*Trade shareholders will receive 1.0432 Morgan Stanley shares for each share they own. (AP Photo/Mark Lennihan, File)

Morgan Stanley is buying online brokerage E-Trade Financial in an all-stock deal worth about $13 billion.

The acquisition combines the resources of Morgan Stanley, an investment bank that caters to huge investors, with a pioneer of online financial services that helped bring waves of small-time individual stock buyers into the market.

E-Trade’s low-cost, no-frills offerings helped drive competition that has resulted in no-commission trades as brokerages fight for clients.

E-Trade comes with 5.2 million accounts and $360 billion in client assets, giving Morgan Stanley a large pool of potential clients for its full-service offerings.

Morgan Stanley has 3 million clients and $2.7 trillion in client assets.

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