eTrade 2012 Annual Report Download - page 31

PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Price Range of Common Stock
The following table shows the high and low sale prices of our common stock as reported by the NASDAQ
for the periods indicated:
High Low
2012:
First Quarter $11.50 $ 7.77
Second Quarter $11.16 $ 7.39
Third Quarter $10.09 $ 7.08
Fourth Quarter $ 9.54 $ 7.70
2011:
First Quarter $18.13 $14.60
Second Quarter $16.83 $13.23
Third Quarter $16.66 $ 9.07
Fourth Quarter $11.69 $ 7.42
The closing sale price of our common stock as reported on the NASDAQ on February 22, 2013 was $10.84
per share. At that date, there were 1,459 holders of record of our common stock.
Dividends
We have never declared or paid cash dividends on our common stock. The terms of our corporate debt
currently prohibit the payment of dividends and will continue to prohibit the payment of dividends for the
foreseeable future. E*TRADE Bank may not pay dividends to the parent company without approval from its
regulators. This dividend restriction includes E*TRADE Securities LLC and E*TRADE Clearing LLC as they
are subsidiaries of E*TRADE Bank.
Equity Compensation Plan Information
In 2005, the Company adopted and the shareholders approved the 2005 Stock Incentive Plan (“2005 Plan”)
to replace the 1996 Stock Incentive Plan (“1996 Plan”) which provides for the grant of nonqualified or incentive
stock options, restricted stock awards and restricted stock units to officers, directors and certain key employees
and consultants for the purchase of newly issued shares of the Company’s common stock at a price determined
by the Board at the date of the grant. The Company does not have a specific policy for issuing shares upon stock
option exercises and share unit conversions; however, new shares are typically issued in connection with
exercises and conversions. The Company intends to continue to issue new shares for future exercises and
conversions.
Options are generally exercisable ratably over a two- to four-year period from the date the option is granted
and most options expire within seven years from the date of grant. Certain options provide for accelerated vesting
upon a change in control. Exercise prices are generally equal to the fair value of the shares on the grant date. As
of December 31, 2012, there were 2.4 million shares outstanding related to non-vested stock options with a
weighted average exercise price of $68.97.
The Company issues restricted stock awards and restricted stock units to certain employees. Each restricted
stock unit can be converted into one share of the Company’s common stock upon vesting. These awards are
issued at the fair value on the date of grant and vest ratably over the period, generally two to four years. The fair
value is calculated as the market price upon issuance. As of December 31, 2012, there were 3.2 million units
outstanding related to non-vested awards.
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