Dallas, Texas 02/18/2014 (FINANCIALSTRENDS) – The S&P 500 index tracked national investment brokerage firm, E TRADE Financial Corporation (NASDAQ:ETFC) during 14th February trading breached its prior 52 week high price benchmark of $21.82 per share before settling down at $21.81. The stock is trading 129 percent above its 52 week low price point of $9.52. From February 1st the stock has posted gains of close to 9 percent, when it announced that it has tied up with the likes of investment banking firms like Jefferies to provide more incisive access to initial public offering stock to its retail investors going forward.
It is important to note here that typically, trading houses favour its relatively lesser numbered, deep pocketed institutional investors and high net worth individuals when placing IPO stock at the expense of its more numerous retail investors. To help its retail investors have a equal shot at investing into IPO, E TRADE Financial Corporation (NASDAQ:ETFC) had entered into a “retail alliance” with Jefferies LLC.
Commenting about the new initiative, which is designed to render the firm more friendly to the retail investors,E TRADE Financial Corporation (NASDAQ:ETFC) president Navtej Nandra has been quoted to have said that, “any client, regardless of account size or length of relationship with the broker, can participate in a Jefferies offering if they meet suitability criteria and submit bids to buy at the offering price or higher. Customers can monitor offerings through customized alerts and make offers through its on-line New Issue Center. Shares are allocated according to “rules-based” criteria that gives every eligible participant equal access”.
This tie up move by Jefferies makes sense, as it is likely to approach companies which are contemplating IPO and highlight the fact that its core investor base is retail centric as against institutional investors hogging IPO offers underwritten by other brokerage firms.