's third-quarter fiscal 2014 was in line with the Zacks Consensus
Estimate while it came above the prior-year quarter figure. Results
were primarily aided by top-line growth. Further, a rise in total
client assets and daily average client trades were the positives.
However, higher expenses were on the downside. The company is
focused on improving its trading and investing business through
product innovation, technology upgrade, enhanced customer service
as well as cost-effective marketing and sales. We remain cautious
about volatile trading volumes amid a challenging macroeconomic
environment. However, IDA agreements to mitigate the regulatory
impact will likely benefit the company in the near term.
Founded in 1971 in California and headquartered in Omaha, NV, TD
Ameritrade Holding Corporation provides securities brokerage
services and technology-based financial services to retail
investors, traders, and independent registered investment advisors
(RIAs) in the United States.
The company's offerings include TD Ameritrade for self-directed
retail investors TD Ameritrade Institutional, which provides
brokerage and custody services to independent RIAs and their
clients thinkorswim that offers a suite of trading platforms
serving self-directed and institutional traders, and money managers
and Investools, which provides investor 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 provides self-directed brokerage services to
employees and executives of different corporations.
The company provides these services through its network of
retail branches, mobile trading applications and the Internet.
Further, TD Ameritrade has interactive voice response facility and
registered representatives to provide services over the phone.
Notably, Canada-based Toronto-Dominion Bank (TD Bank) holds 42%
stake in TD Ameritrade. Ameritrade became TD Ameritrade when it
acquired TD Waterhouse USA in 2006. It was then that TD Bank
received a stake in TD Ameritrade. Further in Dec 2013, TD
Ameritrade modified its agreement with TD Bank. The amendment
extends the existing agreement's date of expiry from Jan 24, 2016
to Jan 24, 2021. It also enables TD Ameritrade to carry out more
stock buybacks. According to the amended agreement, if any share
repurchases by TD Ameritrade lead to TD Bank having more than 45%
interests, the latter will have to shed its stake.
TD Ameritrade Holding Corporation (AMTD): Read the
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