Charles Schwab Corporation

In 1963, Charles R. Schwab and two partners started the Investment Indicator newsletter, which gained 3,000 subscribers paying $84 annually.

Charles Schwab Corporation, a prominent investment management and financial services company, was established in 1971. It has been a key player in revolutionizing the brokerage industry by focusing on innovation and customer satisfaction.

In April 1971, Charles Schwab founded the firm as First Commander Corporation in California for traditional brokerage services and to publish the Schwab investment newsletter.

In November 1971, Charles Schwab and four others acquired all the stock from Commander Industries, Inc.

In 1972, Charles Schwab and four others bought all the stock from Commander Industries, Inc., marking a significant ownership change.

Charles Schwab was founded in 1973 with a mission to pioneer market access, lower fees, and promote financial literacy.

On May 1, 1975, the deregulation of brokerage commissions took place, leading to Chuck Schwab emerging as the de facto leader of a revolution in the investor community.

In 1977, Charles Schwab began offering seminars to clients, which aimed to educate and inform them about various investment opportunities and strategies.

In 1979, Charles Schwab took a significant risk by investing half a million dollars in a computer mainframe. This move allowed the company to process double the transactions with higher accuracy and lower costs for clients, establishing Schwab as the first brokerage firm to bring such automation in-house.

In 1980, Charles Schwab, the largest discounter in the country, attempted to take his company public to fund further growth. However, the offering was called off due to problems caused by a new computer system conversion. This setback made raising capital more difficult for the company.

In 1981, Bank of America offered Charles Schwab $53 million in stock to purchase his 37 percent ownership stake in the company. Schwab sold his shares but continued to serve as the president of a semi-autonomous unit within the organization.

In 1982, Schwab became the first to offer 24/7 order entry and quote service, expanding globally with the opening of its Hong Kong office.

In 1983, Charles Schwab arranged for San Francisco's BankAmerica Corporation to acquire his company for $55 million in BankAmerica stock. This acquisition provided needed capital but also subjected the company to banking regulations, limiting its ability to offer new investment options.

In 1984, Charles Schwab introduced the Mutual Fund Marketplace with an initial investment of $5 million. This platform allowed customers to invest in 250 separate mutual funds and easily switch between them using Schwab as the bookkeeper.

By 1985, Charles Schwab had 90 branches and 1.2 million customers, generating $202 million in revenue. Despite being larger than its discount competitors, it was still smaller than the leading retail brokerages. The company also offered personal computer software for investors.

Forbes published an article on June 15, 1987, titled 'How Now, Chuck Schwab?'

In 1988, despite cost-cutting efforts, Schwab's earnings plummeted by 70 percent to $7.4 million, reflecting the challenges faced by the company after the stock market crash.

Business Week on March 19, 1990, highlighted Schwab's sudden rise as the envy of the street.

Fortune magazine on June 1, 1992, explored how Schwab wins investors.

The Wall Street Journal on September 29, 1992, reported on Schwab's profit stumbling amid rising expenses and reduced trading.

On November 9, 1993, the Wall Street Journal discussed Schwab's significant influence in the fund field.

Business Week on December 19, 1994, highlighted the Schwab Revolution.

By 1995, Charles Schwab had become the largest discount broker, boasting significant revenue of $1.4 billion and managing $200 billion in total assets, marking a period of substantial growth and success for the company.

An article in Forbes on April 22, 1996, discussed how Charles Schwab has thrived in the bull market but is looking towards the future with a focus on boomer retirements.

In May 5, 1997, Forbes discussed how Charles Schwab dominated nearly half of the market as retail brokerage moved online.

On December 2, 1997, the Wall Street Journal reported that Charles Schwab's Pottruck would share the title of CEO with the company's founder.

On January 1, 1998, David S. Pottruck became president and co-CEO of Charles Schwab Corporation, indicating a potential succession plan for the company founder, Charles Schwab.

The Wall Street Journal on January 19, 1998, covered the quick end of Schwab's offer of rivals' research.

The Wall Street Journal on February 24, 1998, discussed Schwab's series of misfires putting the firm on the defensive.

A Business Week article on May 25, 1998, discussed the remaking of Schwab.

On July 8, 1998, the Wall Street Journal reported that Schwab planned to offer stock research again.

In 1999, Schwab introduced after-hours trading for Nasdaq and select listed stocks, providing clients with extended trading opportunities.

In 2000, Schwab acquired U.S. Trust for $2.73 billion.

In 2001, the U.S. Trust subsidiary was fined $10 million in a bank secrecy law case, with $5 million each to the New York State Banking Department and the Federal Reserve Board.

In 2002, Charles Schwab introduced Schwab Equity Ratings®, Schwab Private Client (now Schwab Wealth Advisory™), and Schwab Advisor Network® as part of their commitment to advisory solutions, aiming to provide clients with a wide range of advice options free from commission-based conflicts of interest.

In February 2003, the Office of the Comptroller of the Currency approved the application for Charles Schwab Bank, N.A., a federally chartered intrastate retail bank headquartered in Reno, Nevada, marking a strategic expansion into banking services.

On July 24, 2004, David S. Pottruck was dismissed as CEO, and the founder was reinstated to the position.

After realizing the company had 'lost touch with our heritage', Charles Schwab quickly shifted the business focus to providing financial advice to individual investors.

On November 20, 2006, Schwab revealed a deal to sell U.S. Trust to Bank of America for $3.3 billion.

In April 2007, the Charles Schwab Corporation acquired The 401(k) Company, expanding its portfolio and services.

In 2011, Schwab became one of the pioneering brokerages to introduce a smartphone trading app, enabling clients to deposit checks, monitor markets, and execute trades.

The acquisition of OptionsXpress in 2012 provided Schwab's active investors and traders with a new brokerage platform offering advanced trading tools, analytics, and education for executing sophisticated strategies.

In February 2013, Schwab hired Crispin Porter + Bogusky (CP+B) as its lead creative agency with Havas Worldwide remaining to create ads for ActiveTrader and optionsXpress.

In March 2015, Adweek reported on marketing material created by CP+B for Schwab's Intelligent Portfolio service.

In 2016, Schwab introduced Schwab Intelligent Portfolios Premium®, a service that combines human financial professionals with algorithmic technology to enhance accessibility to financial and investment planning.

In July 2017, Schwab donated the maximum legal individual amount of $101,700 to the Republican National Committee's legal defense fund that partially paid for the legal defense of President Donald Trump in the Special Counsel investigation of possible coordination between the Trump campaign and Russia.

In 2019, Charles Schwab completely removed online trading commissions, marking a significant milestone in their efforts to make investing more affordable.

On July 1, 2020, the Charles Schwab Corporation acquired Wasmer, Schroeder & Company, a significant player in fixed income investment management.

On October 6, 2020, the Charles Schwab Corporation acquired TD Ameritrade, a major move that reshaped the landscape of the financial services industry.

Effective January 1, 2021, the Charles Schwab Corporation relocated its headquarters from San Francisco, California to Westlake, Texas.

The all-time high Charles Schwab stock closing price was 92.53 on January 14, 2022.

The company is commemorating its 50th anniversary by highlighting its history of innovation and success.

The latest closing stock price for Charles Schwab as of April 11, 2024 is 70.62.