1015780--3/3/2006--E_TRADE_FINANCIAL

related topics

{debt, indebtedness, cash}

{loan, real, estate}

{stock, price, share}

{regulation, change, law}

{competitive, industry, competition}

{condition, economic, financial}

{system, service, information}

{operation, international, foreign}

{product, market, service}

{provision, law, control}

{control, financial, internal}

{stock, price, operating}

{regulation, government, change}

{investment, property, distribution}

Risks Relating to the Nature and Operation of Our Business Many of our competitors have greater financial, technical, marketing and other resources If we do not successfully manage consolidation opportunities, we could be at a competitive disadvantage Downturns or disruptions in the securities markets could reduce trade volumes and margin borrowing and increase our dependence on our more active customers who receive lower pricing We depend on payments from our subsidiaries We rely heavily on technology to deliver products and services Downturns in the securities markets increase the credit risk associated with margin lending or stock loan transactions We may be unsuccessful in managing the effects of changes in interest rates and the interest-earning banking assets in our portfolio The diversification of our asset portfolio may increase the level of charge-offs An increase in our delinquency rate could adversely affect our results of operations Risks associated with principal trading transactions could result in trading losses Reduced grants by companies of employee stock options could adversely affect our results of operations Reduced spreads in securities pricing, levels of trading activity and trading through market makers and/or specialists could harm our specialist and market maker business Advisory services subject us to additional risks Our international efforts subject us to additional risks and regulation, which could impair our business growth Risks Relating to the Regulation of Our Business We are subject to extensive government regulation, including banking and securities rules and regulations, which could restrict our business practices If we fail to comply with applicable securities, banking and insurance laws, rules and regulations, either domestically or internationally, we could be subject to disciplinary actions, damages, penalties or restrictions that could significantly harm our business If we do not maintain the capital levels required by regulators, we may be fined or even forced out of business As a non-grandfathered savings and loan holding company, we are subject to regulations that could restrict our ability to take advantage of certain business opportunities Risks Relating to Owning Our Stock We have incurred losses in the past and we cannot assure you that we will be profitable We expect that expensing stock options granted to our employees will have an impact on our financial results We are substantially restricted by the terms of our senior notes Our corporate debt levels may limit our ability to obtain additional financing The market price of our common stock may continue to be volatile We may need additional funds in the future, which may not be available and which may result in dilution of the value of our common stock We have various mechanisms in place that may discourage takeover attempts

Full 10-K form ▸

1015780--3/3/2006--E_TRADE_FINANCIAL_CORP