TD Ameritrade Case Analysis
TD Ameritrade is a brokerage firm based in Omaha, Nebraska with a major trading center in St Louis, Missouri. The letters TD are derived from Toronto-Dominion Bank, the largest shareholder. The company provides services for individuals and institutions that are investing online. The company offers an electronic trading platform for the purchase and sale of financial securities including common stocks, preferred stocks, futures contracts, exchange-traded funds, options, mutual funds, and fixed income investments. It also provides margin lending, and cash management services.
As of September 30, 2018, Ameritrade had 11,514,000 funded client accounts and client assets of $1.297 trillion. In fiscal year 2018, the company executed an average of 811,110 client transactions per day.
In fiscal year 2018, the company derived 36.1% of its revenues from commissions and fees including payment for order flow, 28.3% of its revenues from Toronto-Dominion Bank for investment of idle cash balances, 23.3% of revenues from interest, 10.2% from investment product fees, and 2.1% from other sources.
| Industry | Financial services |
|---|---|
| Founded | 1971; 47 years ago |
| Headquarters | Omaha, Nebraska, U.S. |
| Key people | Tim Hockey, CEO Joe Moglia, Chairman J. Joseph Ricketts, Founder Steve Boyle, CFO |
| Related Business Companies: | Harvard, Mckinsey, Communispace , Accenture, Barclays Bank, Robinhood |
Ameritrade Case Study Examples
Harvard Case Ameritrade
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 […]
Ameritrade’s Cost of Capital Case Study
Amerada management consider when evaluating the proposed advertising program and technology upgrades? Why? One factor that is significant and pertinent to this case is determining the cost of capital that should be employed for Amerada. An appropriate discount rate is required to derive the net present value of the advertising program and technology upgrades. We […]
Ameritrade: Case Study
A historical approach was adopted using returns of the average market proxy from 84′-97′. The average annual return (15. 71 was calculated using the assumed risk free rate and M market return, the market risk premium was assumed to be 9. 37%. Asset betas Newer calculated using linear regression models plotting monthly market returns against […]
Case Study Ameritrade
Marinade’s Cost of Capital Executive Summary After careful analysis of Amerada and comparable companies, I have estimated a 14. 784% cost of capital that should be used to evaluate Marinade’s upcoming investments in technology and advertising. After analyzing the historical return on Marinade’s investments, I have concluded that if the firm manages this project at […]
