eTrade 2001 Annual Report Download - page 5

• Planning and Advice: In addition to the regularly updated research, news and planning tools offered on our web site, customers
can also gain access to personalized investment advice through our all-electronic E*TRADE Financial Advisor, which is a
service of E*TRADE Advisory Services, Inc., an investment adviser registered with the Securities and Exchange Commission
(“SEC”). E*TRADE Financial Advisor provides specific mutual fund recommendations based on an individual’ s retirement and
education goals, current holdings and assets, and risk tolerance. In addition, through our partnership with Ernst & Young,
customers have access to a network of personal financial planners should our customers seek additional assistance in planning
their financial futures.
We want our customers to have access to their financial information anytime, anywhere, and on any device. We provide service 24
hours a day, 7 days a week, by means of the Internet, automated telephone service, direct modem access, Internet-enabled wireless
devices and live telephone support. In addition, customers can visit any of five E*TRADE Financial Centers located in New York
City, Boston, Beverly Hills, Denver and San Francisco or our E*TRADE Financial Zones located in select SuperTarget stores across
the country. Customers can also access their cash through our network of more than 11,000 automated teller machines.
On January 22, 2001, we changed our fiscal year end from September 30 to December 31. During the three-month period ended
December 31, 2000 (the “transition period”) and fiscal year 2001, we realized several important financial milestones, including the
following:
• We raised $325.0 million through the issuance of 6.75% convertible subordinated notes, retired $214.8 million of our 6%
convertible subordinated notes through share exchanges and cash repurchases with existing security holders, and repurchased
37.5 million shares of common stock at a weighted average price of $6.37 per share.
• We continued to diversify our revenue streams, increasing non-transactional revenue from 46% of net revenues in the year
ended September 30, 2000 to 68% of net revenues in the fiscal year ended December 31, 2001.
• We listed our stock on the New York Stock Exchange.
In fiscal year 2001, we executed against a number of initiatives to further diversify our product and services offerings and revenue
streams, realize efficiencies and synergies from operations and acquisitions, and improve our global reach.
Product and Revenue Diversification
• We acquired and successfully integrated E*TRADE Mortgage Corporation into our Banking business. We also acquired Web
Street, Inc. (“Web Street”), an online brokerage firm, whose customers were integrated into that of E*TRADE Securities.
Finally, we acquired Dempsey and Company LLC (“Dempsey”), a market-making and specialist firm, to complement our
brokerage business and extend our vertical integration within the brokerage industry.
• We acquired PrivateAccounts, Inc. and renamed it E*TRADE Advisory Services, Inc. (“E*TRADE Advisory Services”). This
acquisition allows us to offer separate account management services for those investors who seek private management of their
money. This service is called Personal Money Management.
2002. EDGAR Online, Inc.