Charles Schwab's Cause

"To be the most ethical and useful financial services company in the world."

The Schwab philosophy – Your needs first.

Charles Schwab's Major Financial Achievements

• Market capitalization increased from US$500,000 in 1979 to US$51 billion in 1999

• Client assets increased from US$48 billion in 1992 to app. US$ 1 trillion in 2004

Charles Schwab Timeline

Main source of information: "Charles Schwab," John Kador³

1963 Charles Schwab and two other partners launch Investment Indicator, an investment advisory newsletter. At its height, the newsletter has 3000 subscribers, each paying $84 per year to subscribe.

1971 Charles establishes First Commander Corp., a traditional brokerage, with $100,000 borrowed from his entrepreneurial uncle, Bill Schwab.

1973 Charles buys out his other partners, assuming all of the company's debt. He changes First Commander's name to Charles Schwab & Co., Inc.

1974 The SEC mandates a 13-month trial period for the deregulation of certain brokerage transactions. While many brokerages take the opportunity to raise commissions, Charles seizes the opportunity to create a new kind of brokerage, a discount broker and pitchman is born.

1975 On May 1, the SEC officially approves "negotiated" commissions, marking the birth of the discount brokerage industry. The Pacific Coast Stock Exchange approves Schwab's membership. Schwab opens a Sacramento office – its first branch outside of San Francisco.

1976 First ads feature Charles in shirt-sleeves: the Schwab brand is born. Early foray into high-tech innovation: Bunker Ramo System 7, begins delivering stock quotes to customers. Options Clearing Corp. membership approved. First branch opens. By 1979 it brags of 33,000 customers.

1980 Schwab introduces 24-hour weekday quote service. Adopts tagline: "America's largest discount brokerage." Branches: 23

1980 Schwab touts his service, discounts and "state of the art computer system."

1981 In first big merger among discounters, Schwab acquires Kingsley, Boye and Southwood. Also acquires Letterman Transaction Services and Ridgeway. Becomes member of the New York Stock Exchange. Opens first office in Manhattan.

1983 Bank of America officially acquires Schwab for $57 million. Company opens up 500,000th customer account.

1984 Launches Mutual Fund MarketPlace with 140 no-load funds as well as three new online products: SchwabQuotes, Financial Independence and The Equalizer – a DOS-based application that would point the way toward an online future. David Pottruck joins the firm as EVP of Marketing and Advertising.

1985 Introduces Equalizer online investing software and SchwabQuotes touch-tone quote system. Launches standalone Financial Independence software for managing personal finances on the PC.

1986 Abandons Financial Independence product for lack of fit with core brokerage business.

1987 Completes management-led buyback from Bank of America for $280 million. In September, The Charles Schwab Corporation (the parent corporation) completes IPO of eight million shares at $16.50. In October, the stock market crashes, exposing Schwab to critical margin exposure.

1988 Advisor Source, partnership with independent investment advisors takes off. The early day-traders: a 900 number hawks news and tips to trading junkies.

1989 Telebroker replaces Schwab Quotes; introduces touch-tone trading and quote system.

1990 Opens Indianapolis call center.

1993 StreetSmart online trading system replaces Equalizer.

1994 Schwab reaches $1 billion in revenues and $100 billion in customer assets. Decentralization of the company into nine customer enterprises.

1995 Schwab commits to moving enterprise to Electronic Brokerage

1996 Internet trading launched. Company introduces e.Schwab. You want some advice? Schwab pitches Select List, its top mutual fund picks.

1998 Giant on the Web. Schwab passes Merrill Lynch in total Stock Market capitalization. Schwab hits 1.8 million online accounts. Full-service firms firms play catch-up with me-too offerings.

2004 The Group operates 236 domestic branch offices in 43 states. On 16-Jan-2004, the Group acquired SoundView Technology Group, Inc. On 29-Oct-2004 the Group sold its Capital Market business to UBS.