eTrade 2005 Annual Report Download - page 23

Table of Contents
We may incur additional indebtedness in the future, including in connection with further acquisitions. Our level of indebtedness,
among other things, could:
•
make it more difficult or costly for us to obtain any necessary financing in the future for working capital, capital expenditures,
debt service requirements or other purposes;
•
make it more difficult to refinance outstanding debt;
•
limit our flexibility in planning for, or reacting to, changes in our business; or
•
make us more vulnerable in the event of a downturn in our business.
The market price of our common stock may continue to be volatile
From January1, 2003 through December31, 2005, the price per share of our common stock ranged from a low of $3.65 to a high of $21.71.
The market price of our common stock has been, and is likely to continue to be, highly volatile and subject to wide fluctuations. In the
past, volatility in the market price of a company’s securities has often led to securities class action litigation. Such litigation could
result in substantial costs to us and divert our attention and resources, which could harm our business. Declines in the market price of
our common stock or failure of the market price to increase could also harm our ability to retain key employees, reduce our access to
capital and otherwise harm our business.
We may need additional funds in the future, which may not be available and which may result in dilution of the value of our common
stock
In the future, we may need to raise additional funds via debt and/or equity instruments, which may not be available on favorable terms,
if at all. If adequate funds are not available on acceptable terms, we may be unable to fund our plans for the growth of our business. In
addition, if funds are available, the issuance of equity securities could dilute the value of our shares of our common stock and cause
the market price of our common stock to fall.
We have various mechanisms in place that may discourage takeover attempts
Certain provisions of our certificate of incorporation and bylaws may discourage, delay or prevent a third party from acquiring control
of us in a merger, acquisition or similar transaction that a shareholder may consider favorable. Such provisions include:
•
authorization for the issuance of “blank check” preferred stock;
•
provision for a classified Board of Directors with staggered, three-year terms;
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2006. EDGAR Online, Inc.