E-Trade Financial Corp. said that its 1-for-10 reverse stock split went into effect Wednesday.
Shares will continue to trade on the Nasdaq exchange under the symbol "ETFC" with a "D" added to the end for 20 trading days.
The reverse split was approved by stockholders in May.
E-Trade shares rose 53 cents, or nearly 4 percent, to $14.73 in afternoon trading.
E*TRADE Financial Corporation priced the secondary offering of 172 million shares of its common stock at a price to public of $1.75 per share. All shares will be sold by Citadel Equity and Wingate Capital.
E*TRADE will not receive any proceeds from the offering.
E*Trade added a line-up of actively managed portfolios to their product line. With a minimum investment of $25,000 E*Trade customers can get one-on-one portfolio management. Administrative services, investment research, portfolio selection recommendations and due dilligence support will be provided by PNC Investment Management.
E*Trade joined its main competitors in cutting its trading commissions. All E*Trade customers will now be charged $9.99 or less per stock and options trade while higher volume traders will continue to pay $7.99 per trade. E*Trade's move follows Charles Schwab Corp and Fidelity Investments' announcedments of prices cuts of their own in the past two months.
TD Waterhouse, an online broker in the UK, agreed to acquire E*Trade financial's UK customer base following E*Trade's decision to focus its international business on the US cross border product offering for global investors. E*Trade will invite approximately 24,000 active UK customer's accounts holding GBP 467 million in assets to transfer to the TD Waterhouse UK platform.
Stock price plunged after E*Trade announced its seventh straight quarterly loss and is under regulatory pressure to raise new capital.
E*Trade's stock price jumped after the company announced that its first quarter earnings would be released during a conference call at the end of the month.
In February, ETFC had deliquent home equiity loans of $753 million -- a 16% decline in two months. ETFC also received $1.2 billion in new assets in February.
ETFC retired $450 million of its 6.125% subordinated notes due 2018. When the notes were retired, ETFC also issued 25 million shares of E*TRADE common stock at $18/share.