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Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Marriott Vacations Worldwide Corp. (NYSE: VAC), where a total volume of 1,321 contracts has been traded thus far today, a...


LPL Investment Holdings (NASDAQ:LPLA) is the largest an independent broker-dealer which provides its services to more than 12,000 financial advisors and financial institutions. LPL focuses on the "mass affluent market" which is defined as investors who are in charge of between $100,000 and $1,000,000 in assets. By remaining unaffiliated with financial advisors, the company hopes to provide support financial advisors in their operations but without giving them a conflict of interest. The company operates out of 3 locations - in Boston, Charlotte, and San Diego.[1]

LPL currently serves over 12,000 advisors, and has been able to grow its clients by an annual growth rate of 13.2%.[2] The company expects that the number of potential clients will grow as the amount of household and nonprofit financial assets grows. According to the US Federal Reserve, this figure grew by 8% from 2008 to 2009 , and is now at $45.1T.[3] In addition, LPL believes that its client base is well diversified as they are spread across 750 banks and credit unions.[4]

The company's initial public offering of stock on the NASDAQ occurred on November 17, 2010. The company offered approximately 15.7M shares each for $30 each. This was at the high end of the the initial price range of $27-$30. The IPO raised a total of $468M. The lead underwriters of the deal were Goldman, Morgan Stanley, Bank of America, and JP Morgan.[5]

LPL's net revenues have decreased by 11.8% from 2008 to 2009. The company reported revenues of $2.7B in 2009, while it reported $3.1B in 2008. Despite this fall, the company increased its net income by 4.4% between the same period. The company's net income was $47.5M in 2009, while it was $45.5M in 2008. [6]


  1. LPLA S-1/A 2010 PROSPECTUS SUMMARY "Overview" pg 1
  2. LPLA S-1/A 2010 PROSPECTUS SUMMARY "Our Financial Advisors" pg 2
  3. LPLA S-1/A 2010 PROSPECTUS SUMMARY "Market Opportunity and Industry Background" pg 1
  4. LPLA S-1/A 2010 PROSPECTUS SUMMARY "Our Financial Advisors" pg 3
  5. Renaissance Capital - IPO Home "LPL Investment prices 15.6 million share IPO at $30, top of its range" 17 Nov 2010
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