{"id":246,"date":"2012-06-10T15:12:05","date_gmt":"2012-06-10T15:12:05","guid":{"rendered":"http:\/\/www.knowfinance.com\/?page_id=246"},"modified":"2012-06-10T15:12:05","modified_gmt":"2012-06-10T15:12:05","slug":"charles-schwab-corporation","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/learn\/charles-schwab-corporation\/","title":{"rendered":"Charles Schwab Corporation"},"content":{"rendered":"<p>The Charles Schwab Corporation (NYSE: SCHW) provides securities brokerage, banking through Schwab Bank, and related financial services to individual investors. The corporation also serves independent investment advisors and company benefit plan sponsors.<\/p>\n<p>The Charles Schwab Corporation provides a full range of securities, brokerage, banking, money management and financial advisory services through its operating subsidiaries. Its broker-dealer subsidiary, Charles Schwab &amp; Co., Inc. (member SIPC), offers investment services and products, including Schwab brokerage accounts. Its banking subsidiary, Charles Schwab Bank (member FDIC and an Equal Housing Lender), provides deposit and lending services and products.<\/p>\n<p><strong>Charles Schwab Corporation<\/strong><\/p>\n<p>The Charles Schwab Corporation serves clients through two primary business segments.<\/p>\n<ul>\n<li>Investor Services provides retail brokerage and banking services, through Schwab Bank, to millions of individual investors.<\/li>\n<li>Institutional Services provides custodial, trading and support services to independent investment advisors. This business-to-business segment also provides retirement plan services, specialty brokerage services and mutual fund clearing services.<\/li>\n<\/ul>\n<p>In addition, Schwab subsidiares include Charles Schwab Investment Management, Inc., the investment advisor for Schwab&#8217;s proprietary funds, and Charles Schwab Bank, a federal savings bank. Schwab also supports the communities where we live and work through the private, nonprofit Charles Schwab Foundation.<\/p>\n<p><strong>History<\/strong><\/p>\n<p>For\u00a0decades, The Charles Schwab Corporation has been an advocate for\u00a0individual investors and the independent advisors who serve them.<\/p>\n<ul>\n<li><strong>1963: <\/strong>Chuck Schwab and two other partners launch Investment Indicator, an investment advisory newsletter. At its height, the newsletter had 3,000 subscribers, each paying $84 a year to subscribe.<\/li>\n<li><strong>1971: <\/strong>In April, the firm is incorporated in California as <strong>First Commander Corporation<\/strong>, a wholly-owned subsidiary of Commander Industries, Inc. to conduct a conventional broker-dealer securities business and publish the Schwab investment newsletter. In November,\u00a0Chuck Schwab and four others buy all stock from Commander Industries, Inc.<\/li>\n<li><strong>1972: <\/strong>Chuck Schwab buys all stock from what was once Commander Industries.<\/li>\n<li><strong>1973: <\/strong>The corporate name changes to <strong>Charles Schwab &amp; Co., Inc.<\/strong><\/li>\n<li><strong>1974: <\/strong>In April, the SEC mandates a 13-month trial period for the deregulation of certain brokerage transactions.<br \/>\n<strong>1975: <\/strong>On May 1, The SEC mandates negotiated commission rates for all securities transactions. While many brokerages take the opportunity to raise commissions, Chuck seizes the opportunity to create a new kind of brokerage \u2014 a discount brokerage.\u00a0In September, Schwab opens its first branch in Sacramento, CA.<\/li>\n<li><strong>1977: <\/strong>Schwab opens an office in Seattle \u2014 the first branch outside of California \u2014 and begins offering seminars for customers.<\/li>\n<li><strong>1978: <\/strong>Schwab extends service hours for customer service and quotes from 5:30 a.m. to 9:00 PST \u2014 an industry first. Client accounts total 45,000.<\/li>\n<li><strong>1979: <\/strong>In a &#8220;bet-the-company&#8221; move, Schwab invests in the BETA mainframe system. The success of this automated transaction and record-keeping system demonstrates that technology can be a key growth driver.\u00a0Client accounts total 84,000.<\/li>\n<li><strong>1980:<\/strong> Schwab establishes the industry\u2019s first 24-hour quotation service. Client accounts total 147,000.<\/li>\n<li><strong>1981:<\/strong> Schwab becomes a member of the NYSE.\u00a0The firm opens its first location in Manhattan.\u00a0Larry Stupski is named President and COO of the firm.\u00a0Client accounts total 222,000.<\/li>\n<li><strong>1982: <\/strong>Schwab is the first to offer 24-hour, 7-day-a-week order entry and quote service. The company\u2019s first international office opens in Hong Kong.\u00a0The IRA account is introduced.\u00a0Client accounts total 374,000.<\/li>\n<li><strong>1983:<\/strong> Bank of America acquires Schwab for $55 million. Schwab introduces the new Schwab One\u00ae asset management account.\u00a0Client accounts surpass 500,000 and reach 648,000 by year-end.<\/li>\n<li><strong>1984:<\/strong> Schwab introduces <strong>Mutual Fund MarketPlace<\/strong>\u00ae with 140 no-load funds. The company launches SchwabQuotes\u00ae and The Equalizer\u00ae \u00a0\u2014 a DOS-based technology solution that points the way toward an online future.\u00a0Client accounts total 903,000. Client assets reach $5.1 billion.<\/li>\n<li><strong>1985:<\/strong> In August, Schwab records its\u00a01-millionth client account. By year-end, client accounts reach 1.2 million with client assets of $7.6 billion.<\/li>\n<li><strong>1986:<\/strong> Schwab becomes the first to offer 24-hour, 7-day-a-week mutual fund trading service. Client assets reach $11.3 billion.<\/li>\n<li><strong>1987:<\/strong>\u00a0In July, management\u00a0leads a buyback from Bank of America for $280 million. In September,\u00a0The Charles Schwab Corporation completes its <strong>initial public offering<\/strong>.\u00a0\u00a0In October, the market crashes and the Dow Jones Industrial Average loses 500 points, but at year-end client\u00a0assets reach $14.3 billion. During the year, Schwab launches <strong>Financial Advisors Service <\/strong>to serve independent investment advisors.<\/li>\n<li><strong>1988:<\/strong> Financial Advisors Service exceeds $1 billion in client assets after just one year of business. At year-end, Schwab\u2019s total client assets reach $17.7 billion.<\/li>\n<li><strong>1989:<\/strong> Schwab introduces <strong>TeleBroker<\/strong>\u00ae, an automated technology for telephone brokerage service. At year-end, total client assets reach $25.3 billion.<\/li>\n<li><strong>1990:<\/strong> The company introduces Schwab Funds\u00ae money market mutual funds, starting with $5 billion. The Indianapolis service center opens as the first customer telephone service center outside of San Francisco.\u00a0The first Asia Pacific center opens with bilingual services.\u00a0At year-end, total client assets reach $30.6 billion.<\/li>\n<li><strong>1991: <\/strong>The company introduces the <strong>Schwab 1000 Fund<\/strong>\u00ae, an equity index fund that reaches $191 million in client assets by year-end. Schwab opens its second call center, in Denver.\u00a0Schwab hosts the first annual National Financial Advisors Conference, later renamed IMPACT\u00ae.\u00a0Schwab launches its first network TV advertising campaign.\u00a0At year-end, total client assets reach $47.5 billion.<\/li>\n<li><strong>1992: <\/strong>Charles Schwab Trust Company\u00ae is created.\u00a0The company introduces no-annual-fee IRA and no-transaction fee <strong>Mutual Fund OneSource\u00a9<\/strong> service.\u00a0Schwab opens its third call center, in Phoenix.\u00a0Latin American center opens in Miami.\u00a0At year-end, total client assets reach $65.6 billion.<\/li>\n<li><strong>1993: <\/strong>Charles Schwab Limited opens its first office in London. Employees move into a new Orlando service center.\u00a0At year-end, total client assets reach $95.8 billion.<\/li>\n<li><strong>1994:<\/strong> Spanish-language TeleBroker service is introduced.\u00a0Total client assets rise above $100 billion mark to $122.6 billion at year-end.<\/li>\n<li><strong>1995:<\/strong> Schwab activates its first website at schwab.com\u00ae.<\/li>\n<li><strong>1996:<\/strong> Web trading goes live. Customers can trade listed and OTC stocks or check balances and the status of orders. The SchwabPlan is introduced, offering companies and their employees access to more than 1,300 mutual funds in a new, bundled 401(k) product. Schwab AdvisorSource\u00ae referral service is introduced nationally. At year-end, total client assets reach $253 billion.<\/li>\n<li><strong>1997:<\/strong> The Charles Schwab Corporation is added to S&amp;P 500 Index. The website registers its 1 millionth online account. Schwab\u2019s Hong Kong office reopens after being closed since the 1987 market crash. Mutual Fund Report Card is introduced with a single-page review of more than 7,700 mutual funds. In December, David Pottruck is named co-CEO of the corporation. At year-end, total client assets reach $437 billion.<\/li>\n<li><strong>1998:<\/strong> Two Canadian brokerages are acquired to create Charles Schwab Canada. Online accounts reach 2 million. TeleBroker adds voice technology. At year-end, total client assets reach $594 billion. Chuck Schwab releases his second book, <em>Charles Schwab&#8217;s Guide to Financial Independence<\/em>.<\/li>\n<li><strong>1999: <\/strong>Schwab launches after-hours trading for Nasdaq and select listed stocks.<\/li>\n<li><strong>2000:<\/strong> Schwab and U.S. Trust merge. The company also acquires CyBerCorp, Inc. to better serve active on-line traders. Schwab introduces pre-market trading for most Nasdaq and listed securities, with orders accepted\u00a0from 7:45 a.m. to 9:15 a.m. (eastern time) Monday through Friday.<\/li>\n<li><strong>2001:<\/strong> CyBerCorp, Inc. changes its name to Cyber Trader\u00ae Inc. and enhances its service with improved software, educational tools and tiered pricing.<\/li>\n<li><strong>2002:<\/strong> Schwab launches an alternative for investment research, Schwab Equity Ratings\u00ae, and two new advisory services for affluent investors, Schwab Private Client\u2122 and Schwab Advisor Network. Schwab Core Equity Fund and Schwab Hedged Equity Fund are introduced, with both using the Schwab Equity Ratings model.<\/li>\n<li><strong>2003: <\/strong>Charles Schwab Bank\u00ae launches, introducing price and service guarantees on home mortgage loans. U.S. Trust acquires State Street Corp.&#8217;s Private Asset Management business, creating a full-service wealth management firm serving the New England region.<\/li>\n<li><strong>2004:<\/strong> Schwab announces the dual listing of its common stock on Nasdaq and NYSE; later in the year, Schwab sells its seat on the NYSE.<\/li>\n<li><strong>2005:<\/strong> Schwab eliminates account service and order handling fees for retail accounts and small business retirement plans. The company gives all clients access to\u00a0Schwab Equity Ratings, which inspire the launch of the <strong>Schwab Premier Equity Fund<\/strong>\u2122 and new <strong>Schwab Portfolios<\/strong>\u2122.<\/li>\n<li><strong>2006:<\/strong> Schwab lowers and simplifies pricing for equity, option, mutual fund and bond transactions. The firm announces a security guarantee, covering 100 percent of account losses arising from unauthorized account activity.<\/li>\n<li><strong>2007:<\/strong> The corporation completes the acquisition of The 401(k) Company , a retirement plan provider in\u00a0Austin, TX, and Charles Schwab Investment Management completes the acquisition of\u00a0Global Real Analytics, LLC (GRA). Charles Schwab Bank introduces the <strong>High Yield Investor Checking<\/strong>\u2122 account.<\/li>\n<li><strong>2008:<\/strong>\u00a0Chuck Schwab is named chairman of the <strong>President&#8217;s Advisory Council on Financial Literacy<\/strong>. The company enhances Schwab.com, improves <strong>StreetSmart Pro<\/strong>, upgrades\u00a0risk management\u00a0tools on <strong>StreetSmart.com<\/strong>, and launches an online community focused on active trading.<\/li>\n<li><strong>2009:<\/strong> Schwab introduces <strong>Real Life Retirement<\/strong>\u2122 Services with practical tools and resources for those nearing retirement. Charles Schwab Bank launches the Schwab Bank <strong>High Yield Investor<\/strong> <strong>Savings<\/strong>\u2122 account.<\/li>\n<li><strong>2010:<\/strong> Schwab announces reductions in online equity trade commissions designed to provide greater value for investors, regardless of the frequency or size of their trades. The Charles Schwab Corporation lists shares on the New York Stock Exchange (NYSE).<\/li>\n<li><strong>2011: <\/strong>Schwab launched a new platform for active traders, <strong>StreetSmart Edge\u00ae<\/strong>, designed to simplify complex trading activities &amp; provide a more intuitive experience.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>The Charles Schwab Corporation (NYSE: SCHW) provides securities brokerage, banking through Schwab Bank, and related financial services to individual investors. [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[124],"tags":[],"class_list":["post-246","post","type-post","status-publish","format-standard","hentry","category-broker"],"_links":{"self":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts\/246","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/comments?post=246"}],"version-history":[{"count":0,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/posts\/246\/revisions"}],"wp:attachment":[{"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/media?parent=246"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/categories?post=246"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www2.stockmarketwatch.com\/learn\/wp-json\/wp\/v2\/tags?post=246"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}