Massachusetts Opens Inquiry Into 7 Brokerage Firms
Massachusetts is investigating whether brokerage firms enriched themselves at their clients' expense.

The Massachusetts Secretary of Commonwealth William F. Gavin has sent inquiry letters to seven brokerage firms as part of an investigation into whether they hurt investors by routing trades to stock exchanges that pay them rebates, the Wall Street Journal reported Tuesday.

Charles Schwab Corp. (SCHW) , Edward Jones Money Market Fund, E*Trade Financial Corp. (ETFC) , Fidelity Investments, Morgan Stanley (MS) , Scottrade and TD Ameritrade Holding Corp (AMTD) all received investigatory letters. 

"If financial rebates or kickbacks create a conflict that results in less than the best deal for the investors, this practice must stop," Gavin said. 

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