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More recently, the tide has changed, with the combination of a market downturn and global conditions creating a three-year market slump. Many who were unable to find the resources necessary to manage through this environment were required to take appropriate steps, which sometimes meant selling or merging with other firms. This year has proven our intention to lead as an acquirer.
Consolidation has been a sweet spot for us. Three years ago, there was no shortage of online brokers, with a few hundred in existence. Today, about half that number dot the landscape, with the majority of market share residing with the top five. Of the leading fourteen mergers or acquisitions which have taken place in the online brokerage industry, Ameritrade participated in six. Our landmark merger with Datek was the largest, adding 875,000 accounts, producing a new leader in online equity trades and adding considerable shareholder value.
With the future in mind, shareholders and clients can expect the same operational and management excellence. Corporate America, in particular financial services, is being highly scrutinized and investors are increasingly looking for a partner who embodies transparency, integrity and an unbiased position with their clients. Ameritrade will continue to focus on being an advocate for independent investors as well as a partner for helping them achieve their financial goals.
We will accomplish this by providing great value, tools and client experience—the same brand attributes we have stood for since the Company’s inception. A marvelous growth opportunity lies ahead and we are prepared to address it with both active and long-term investors. We are expanding our offering to address the Mass Affluent market, which includes 37 million households and $11 trillion in assets in the U.S. Many are very comfortable with the Internet and making their own decisions, and Ameritrade will be there to provide a practical and convenient solution for their long-term investing needs. |
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