Charles Schwab Corp - Leading Discount Broker Offered Internet Trading In 1996, Schwab Continued To Redefine Itself, 2000-2001
company million accounts online
Although it wasn't the first company to offer securities trading over the Internet, Charles Schwab & Co. Inc.—the principal operating subsidiary of the Charles Schwab Corp.—was the leading online brokerage firm at the end of the 20th century. More than 3.3 million of the company's 6.6 million active accounts were online accounts, representing nearly half of the company's client assets.
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When Schwab began offering securities trading over the Internet in April 1996, it was the leading discount brokerage firm in the United States. The firm's brokers were paid salaries rather than commissions, and customers paid fixed fees rather than commissions when they bought and sold stocks and other securities. Schwab's first online trading venture was called e.Schwab and was set …
In February 2000 Schwab announced it would acquire CyBerCorp. Inc., a closely held electronic trading technology and brokerage firm based in Austin, Texas, for about $488 million. The acquisition was designed to enhance services offered to very active traders. CyBerCorp., which would operate as a subsidiary, allowed traders to scan multiple electronic communications networks, market makers, and ma…
Schwab had doubled its workforce to 25,500 full-time employees during the bull market surge from 1998 through the end of 2000. When stocks tumbled in February 2001, the company announced plans to cut 11 to 13 percent of its workforce in the second quarter, including 2,000 to 2,300 employees who would be laid off and another 600 to 900 who would leave through attrition. In February 2001, Schwab�…
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