1 Huge Loss That's a Temporary Blip

Before you go, we thought you'd like these...
Before you go close icon

Knight Capital's $390 million loss this most recent quarter is pretty bad news and stems from an accounting charge related to a bailout package, as well as s pre-tax $461 million hit when the company's trading system melted down in August.

While this loss certainly is painful for shareholders, in the long term the company looks as if it may be all right.

Of course, market-making has been under pressure recently, so all investors need to take a step back and re-evaluate their positions a bit.


See more in the following video.

With so many of the big finance firms getting bad press these days, you may be inclined to stay away from the sector entirely, but that could be a huge mistake. In fact, some of the best opportunities over the next few years can be found there, including one small, under-the-radar bank. It's been called one of The Stocks Only the Smartest Investors Are Buying. You can learn about it, and more, in our exclusive free report. Just click here to keep reading.

The article 1 Huge Loss That's a Temporary Blip originally appeared on Fool.com.

Anand Chokkavelu has no positions in the stocks mentioned above. Fool contributor Matt Koppenheffer owns shares of The Blackstone Group. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend TD AMERITRADE and Jefferies Group. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners