TD Ameritrades AMTD Dot-Com Stock Crash History
If your stock makes a big move while you’re stuck in traffic, don’t worry — TD Ameritrade (Stock Symbol: AMTD) lets you buy and sell even when you’re on the go.
Through several subsidiaries, it provides electronic discount brokerage and related financial services that enable retail investors to trade common and preferred stocks of US companies, fixed-income securities, exchange-traded funds (ETFs), mutual funds, options, and foreign currencies.
TD Ameritrade also runs the Investools investor education program. In addition to its online offerings, the company provides services through a retail network of more than 100 branches nationwide and via more than independent investment advisors.
The “Dot-Com Bubble” was a speculative bubble covering roughly the years of 1995–2000 with a climax on March 10, 2000 and the NASDAQ peaking at 5132.52 in intraday trading before closing at 5048.62 on the day.
While the latter part of the dot-com bubble was a “Boom and Bust Cycle“, the “Internet Boom” is sometimes meant to refer to the steady commercial growth of the Internet with the advent of the world wide web, as exemplified by the first release of the Mosaic web browser in 1993, and continuing throughout the 1990s.
Over 1999 and early 2000, the U.S. Federal Reserve increased interest rates six times, and the economy began to lose speed. The dot-com bubble burst and TD Ameritrade stock would crash with it.
In March 1997, “Ameritrade” became a publicly held company, and its IPO opened at $15 per share.
Between July 6, 1998 and July 6, 1999 TD Ameritrade experienced tremendous stock growth. Its stock had 3 stock splits on August 18, 1998 [2:1], February 23, 1999 [2:1] and July 6, 1999 [3:1] which pushed its share price from $1.95 to $31.60 per share, split adjusted — over 16 times in value in a year, with it reaching a high of $44.24 per share on April 14, 1999 with its non-split adjusted price standing at $173.25 per share.
When this “Dot-Com Bear Market” finally bottomed, TD Ameritrade was trading at $2.38 per share on July 22, 2002 — up only $0.43 from July 6, 1998. As of April 15, 2011 — TD Ameritrade was trading at $22.50 per share, up 1,153% over the last 13 years which is over 88% per year. This is a classic story of when you should “Buy and Hold” for the long term.
On January 24, 2006, Ameritrade acquired TD Waterhouse from TD Bank Financial Group and following the acquisition, it renamed itself TD Ameritrade.
Back in August of 2007, TD Ameritrade and E*Trade were in serious merger discussions for weeks as two hedge funds with big stakes in TD Ameritrade publicly called on the two companies to talk. The consolidation of the two giants would have made it a dominant player and could have shaken up the industry but analysts said such a deal was unlikely and the merger never went through.
Tags: Ameritrade, AMTD, Boom and Bust Cycle, Buy and Hold, Buy and Sell, Discount Brokerage, Dot Com Bubble, Dot-Com Bear Market, E*Trade, ETF, Federal Reserve, Fixed-Income Securities, Hedge Funds, Interest Rates, Internet Boom, Investools, IPO, Merger Talks, Mosaic Web Browser, Mutual Funds, NASDAQ, Retail Investors, Speculative Bubble, Stock Options, Stock Split, Stock Symbol, TD Ameritrade, TD Waterhouse