eTrade 2000 Annual Report Download - page 35

operations. In addition, even if the ultimate outcomes are resolved in our favor, the defense of such litigation could entail considerable
cost and the diversion of efforts of management, either of which could have a material adverse effect on our results of operation.
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From time to time, we have been threatened with, or named as a defendant in, lawsuits, arbitrations and administrative claims.
Compliance and trading problems that are reported to regulators such as the SEC or the NASDR by dissatisfied customers or others
are investigated by such regulators, and may, if pursued, result in formal arbitration claims being filed against us by customers and/or
disciplinary action being taken against us by regulators. Any such claims or disciplinary actions that are decided against us could have
a material adverse effect on our business, financial condition and results of operations. We are also subject to periodic regulatory
audits and inspections.
The securities industry is subject to extensive regulation under federal, state and applicable international laws. As a result, we are
required to comply with many complex laws and rules and our ability to so comply is dependent in large part upon the establishment
and maintenance of a qualified compliance system. We are aware of several instances of our noncompliance with applicable
regulations. In particular, in fiscal 1997, our failure to timely renew our broker-dealer registration in Ohio resulted in a $4.3 million
pre-tax charge against earnings.
We maintain insurance in such amounts and with such coverages, deductibles and policy limits as management believes are reasonable
and prudent. The principal risks that we insure against are comprehensive general liability, commercial property damage,
hardware/software damage, directors and officers, Fidelity (crime) Bond, and errors and omissions liability. We believe that such
insurance coverage is adequate for the purpose of our business.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
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PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED SHAREOWNER
MATTERS
Price Range of Common Stock
The Company’ s common stock has been traded on the NASDAQ National Market under the symbol EGRP since the Company’ s initial
public offering on August 16, 1996. The following table shows the closing high and low sale prices of the Company’ s common stock
as reported by the NASDAQ National Market for the periods indicated.
High Low
Fiscal 1999:
First Quarter $ 16.25 $ 2.50
Second Quarter $ 33.22 $ 12.74
Third Quarter $ 72.25 $ 29.38
Fourth Quarter $ 42.63 $ 21.31
Fiscal 2000:
First Quarter $ 39.19 $ 22.19
Second Quarter $ 32.63 $ 19.94
Third Quarter $ 27.44 $ 13.94
Fourth Quarter $ 19.75 $ 13.94
2002. EDGAR Online, Inc.