eTrade 2010 Annual Report Download - page 7

• investing and trading educational services via online videos, web seminars and web tutorials; and
• FDIC insured deposit accounts, including checking, savings and money market accounts.
Corporate Services
We offer software and services for managing equity compensation plans for corporate customers. Our
Equity Edge platform facilitates the management of employee option plans, employee stock purchase plans and
restricted stock plans, including necessary accounting and reporting functions. This is a product of the trading
and investing segment since it serves as an introduction to E*TRADE for many employees of our corporate
customers who conduct equity option and restricted stock transactions, with our goal being that these individuals
will also use our other products and services. Our corporate services business rated highest in overall satisfaction
and loyalty among broker plan administrators for full and partial outsourced stock plan administration by
GROUP FIVE, an independent consulting and research firm, in their 2010 Stock Plan Administration
Benchmarking Study.
Market Making
Our trading and investing segment also includes market making activities which match buyers and sellers of
securities from our retail brokerage business and unrelated third parties. As a market maker, we take positions in
securities and function as a wholesale trader by combining trading lots to match buyers and sellers of securities.
Trading gains and losses result from these activities. Our revenues are influenced by overall trading volumes, the
number of stocks for which we act as a market maker and the trading volumes and volatility of those specific
stocks.
Balance Sheet Management
The balance sheet management segment consists of the management of our balance sheet, focusing on asset
allocation and managing credit, liquidity and interest rate risks. The balance sheet management segment manages
loans previously originated or purchased from third parties as well as our customer cash and deposits, which
originate in the trading and investing segment.
For additional statistical information regarding products and customers, see Item 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) beginning on page 28.
Three years of segment financial performance and data can be found in the MD&A beginning on page 45 and in
Note 23—Segment and Geographic Information of Item 8. Financial Statements and Supplementary Data
beginning on page 160.
SALES AND CUSTOMER SERVICE
We believe providing superior sales and customer service is fundamental to our business. Growing our sales
force with a focus on long-term investing is one of the key factors in our growth strategy. We also strive to
maintain a high standard of customer service by staffing the customer support team with appropriately trained
personnel who are equipped to handle customer inquiries in a prompt yet thorough manner. Our customer service
representatives utilize our proprietary web-based platform to provide customers with answers to their inquiries.
We also have specialized customer service programs that are tailored to the needs of each customer group.
We provide sales and customer support through the following channels of our registered broker-dealer and
investment advisory subsidiaries:
•Branches—we have 28 branches located in the U.S. where retail investors can go to service any of their
needs while receiving face to face customer support. Financial consultants are also available on-site to
help customers assess their current asset allocation.
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