Harvard Case Ameritrade
Spring 2010
Ameritrade - Harvard Case Study
Background:
Ameritrade Holding Corporation is securities brokerage services and technology-based financial services firm from the United States. The company was founded in 1971 and is headquartered in Omaha, Nebraska. “Ameritrade MERITRADE for self-directed retail investors; TD AMERITRADE Institutional that provides brokerage and custody services; trading platforms that enables research and analysis; a suite of education products and services for stock, option, foreign exchange, futures, mutual fund, and fixed-income investors; Amerivest, an online advisory service that develops portfolios of exchange-traded funds to help long-term investors pursue their financial goals; and TD AMERITRADE Corporate Services, which offers self-directed brokerage services to employees and executives of corporations (Yahoo Profile).”
Ameritrade also serves as a provider of services such as; trade execution, clearing, trustee, and trust-related services; and cash sweep products through third-party banking relationships. Ameritrade offers its clients “innovative trading technology, easy-to-use and understand investment tools and services, investor education and superior client service to create a market-leading financial services experience (Ameritrade). The firm’s common stock trades under the ticker symbol AMTD on the NasdaqGS and trades at approximately $19.30. Even in difficult times Ameritrade has held pretty strong, during the latest market fluctuation Ameritrade has held its value relatively well from a high 9/15/2008 ($23.58) it’s value is only down 18% compared to it’s competitors such as Charles Schwab Corp who over the same period is off over 28% ($25.25 to $18.18).
Ameritrade planned to grow their revenues by targeting self directed investors. Joe Rickett the CEO decided Ameritrade’s mission was to be the largest brokerage firm worldwide based on the number of trades. This
Ameritrade - Harvard Case Study
Background:
Ameritrade Holding Corporation is securities brokerage services and technology-based financial services firm from the United States. The company was founded in 1971 and is headquartered in Omaha, Nebraska. “Ameritrade MERITRADE for self-directed retail investors; TD AMERITRADE Institutional that provides brokerage and custody services; trading platforms that enables research and analysis; a suite of education products and services for stock, option, foreign exchange, futures, mutual fund, and fixed-income investors; Amerivest, an online advisory service that develops portfolios of exchange-traded funds to help long-term investors pursue their financial goals; and TD AMERITRADE Corporate Services, which offers self-directed brokerage services to employees and executives of corporations (Yahoo Profile).”
Ameritrade also serves as a provider of services such as; trade execution, clearing, trustee, and trust-related services; and cash sweep products through third-party banking relationships. Ameritrade offers its clients “innovative trading technology, easy-to-use and understand investment tools and services, investor education and superior client service to create a market-leading financial services experience (Ameritrade). The firm’s common stock trades under the ticker symbol AMTD on the NasdaqGS and trades at approximately $19.30. Even in difficult times Ameritrade has held pretty strong, during the latest market fluctuation Ameritrade has held its value relatively well from a high 9/15/2008 ($23.58) it’s value is only down 18% compared to it’s competitors such as Charles Schwab Corp who over the same period is off over 28% ($25.25 to $18.18).
Ameritrade planned to grow their revenues by targeting self directed investors. Joe Rickett the CEO decided Ameritrade’s mission was to be the largest brokerage firm worldwide based on the number of trades. This
References: "AMTD: Summary for TD Ameritrade Holding Corporati- Yahoo! Finance." Yahoo! Finance - Business Finance, Stock Market, Quotes, News. N.p., n.d. Web. 4 Apr. 2010. . "AMTD: Profile for TD Ameritrade Holding Corporati - Yahoo! Finance." Yahoo! Finance - Business Finance, Stock Market, Quotes, News. N.p., n.d. Web. 1 Apr. 2010. . TD AMERITRADE - Company Fact Sheet." TD AMERITRADE - . N.p., n.d. Web. 1 Apr. 2010. . "Standard & Poor 's." Standard & Poor 's. N.p., n.d. Web. 1 Apr. 2010. .