America Online and Leading Online Brokerages Announce $75 Million Interactive Marketing Agreement.DULLES, Va.--(BUSINESS WIRE)--June 30, 1998--
Featured on AOL Personal Finance Channel, Cyberspace's No. 1
Personal Finance Area
AOL to Launch New Brokerage and Mutual Fund Centers
To Meet Exploding Demand for Online Personal Finance Services
America Online, Inc., the world's leading Internet online
service, Tuesday announced a two-year pact with three leading online
brokerages for a combined total of $75 million - one of cyberspace's
biggest-ever marketing agreements. The brokerages are DLJdirect
Securities the premier brokerages in AOL's new Brokerage and Mutual
Fund Centers in the AOL Personal Finance Channel -- the most
frequently visited channel on AOL and cyberspace's most popular
personal finance destination. AOL's Personal Finance Channel will
prominently feature these brokerages on the Channel's Main Screen, in
the Quotes, Portfolios, Investment Research, Investment Snapshot and
Market News areas, giving AOL members convenient, easy one- click
access to these leading online brokers. In the Mutual Fund Center,
members can also quickly access and investigate the mutual fund areas
of these primary brokers to get information and trading options
specific to mutual funds.
The agreement calls for each brokerage to pay AOL $12.5 million
annually over the pact's two-year term for a total of $75 million.
AOL's new Brokerage and Mutual Fund Centers will bring an even
greater level of convenience to AOL members by enabling them to
and Waterhouse Securities from anywhere in the Personal Finance Channel. They will also be able to more conveniently access these brokerages' mutual fund information and trading tools. In addition, the new design will allow the brokers to better feature and promote their mutual fund services. Direct access to the three brokerages will also be closely integrated into AOL's newly launched Investment Research area. Easy access to the brokerages will add to the convenience of the Investment Research area, which offers tools from a variety of partners, enabling members to search for stocks and mutual funds as well as other key personal finance information. "Consumer demand for online personal finance services is exploding and AOL (A division of Time Warner, Inc., New York, NY, www.aol.com) The world's largest online information service with access to the Internet, e-mail, chat rooms and a variety of databases and services. is at the center of this trend," said Bob Pittman, America Online's President and Chief Operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "By combining AOL's hallmark ease-of-use and convenience with these leaders in the online brokerage world, this agreement will ensure that we continue to provide access to the best personal finance
and Waterhouse Securities readily available to AOL members."
Myer Berlow, Senior Vice President of AOL Interactive Marketing,
said: "With 51% of all Americans investing in the stock market -- the
highest percentage in 50 years -- and the mass market coming online
with our service, it's no wonder that consumers are increasingly
handling personal finances on AOL. Our agreements with these leading
online brokerages will help them reach the largest active member
community in cyberspace and help them - and AOL -- leverage the
explosive growth and huge potential of online investing."
Leading Online Brokerages Available Through AOL
"AOL is one of the engines that has fueled the growth of the
Internet making customers more comfortable with accessing the
worldwide web. This has had a powerful affect on online investing,"
said K. Blake Darcy, Chief Executive Officer of DLJdirect. "Since
1995, DLJdirect has been providing AOL members with a top-rated
online brokerage service. This new alliance will enable DLJdirect to
showcase its award-winning DLJ research, online access to IPOs and
other powerful investing tools to the ever-increasing AOL community."
A wholly owned subsidiary of Donaldson, Lufkin & Jenrette,
DLJdirect is one of America's leading online brokers and is a
recognized pioneer in the online trading industry. Serving the
serious online investor, DLJdirect has grown to over 450,000 customer
accounts since its inception in 1988, holds over $6 billion investor
assets and has conducted $35 billion in online trade executions.
Among the many accolades received, DLJdirect has been recognized as
the No. 1 Internet Broker by Gomez Advisors, Inc. for four
consecutive quarters (thru Q2 1998).
"We are convinced that as more individuals begin to utilize the
Internet that there will be just a few pre-eminent gateways to the
Web and AOL will stand out among those few," said Christos M.
the years, our partnership with AOL has been a very successful part of our overall marketing program. With the launch of AOL's new Brokerage and Mutual Fund Centers in its Personal Finance Channel, we in the marketplace as it drives even greater traffic to our destination site customized exclusively for AOL customers." investing services via America Online See AOL. since 1992. Named by FUTURE also been honored with the "Torchbearer Award" by FINANCIAL SERVICES ONLINE and "Most Valuable Product of the Year" in the financial services category by PC COMPUTING. With a 95 percent customer assets and has saved its customers more than $800 million in commissions in the past six years. "Waterhouse Securities believes in putting the power of choice into investors' hands, and our presence in AOL's Brokerage Center is one important way we put that belief into practice," explains John Chapel, president of Waterhouse Securities, the discount brokerage firm discount brokerage firm A brokerage firm that discounts commissions for individuals to trade securities. Most discount brokerage firms offer limited advice but reduce their fees by 50% or more compared with full-service brokerage firms. ranked No. 1 two years in a row by SmartMoney magazine. "The Brokerage Center on America Online is reliable, easy-to-use and convenient -- three factors that are critical for successful online investing." In addition to being named the No. 1 overall discount broker two years running, Waterhouse webBroker was also named the No. 1 online trading Online Trading Making trades via the Internet. Notes: The use of online trading increased dramatically in the mid to late 1990's with the advent of high-speed computers and Internet connections. Stocks, bonds, options, futures, and currencies can all be traded online. service by SmartMoney in its July 1998 issue. Key factors in that success include Waterhouse webBroker's $12 flat fee commission for market and limit orders up to 5,000 shares and customer and technical support that's available 24 hours a day, 7 days-a-week. About Online Trading The increasing popularity of online trading is illustrated by the following: -- Trading through AOL's Brokerage Center increased 321% over last year. -- In 1997, the number of consumers trading online grew over 150%, CyberDialogue Research reports. -- Jupiter Communications predicts that by 2002, the number of online trading accounts will swell to 18 million, over 5 times more than today's 3.5 million; -- Forrester Research Forrester Research is an independent technology and market research company that provides its clients with advice about technology's impact on business and consumers. Corporate facts
U.S. households will be investing online Investing online has become the norm for investors and traders over the past decade with many, if not all brokers now offering online services with unique trading platforms. In the past, investors had to call up their brokers and place an order on the phone. , and online accounts will total 4.6% of all retail investment assets. About the AOL Personal Finance Channel AOL's Personal Finance Channel offers the most comprehensive suite of financial tools and information available in cyberspace Coined by William Gibson in his 1984 novel "Neuromancer," it is a futuristic computer network that people use by plugging their minds into it! The term now refers to the Internet or to the online or digital world in general. See Internet and virtual reality. Contrast with meatspace. . With more than five million regular users, more than three times as many users as the top three Web-based financial sites combined, AOL's Personal Finance Channel enables members to research and trade stocks and mutual funds, conduct their online banking, get the most up-to-date business and market news, access detailed financial data, and chat with other members about market trends and financial information. The Channel maintains over eight million active investment portfolios, with 11,000 new portfolios added every trading day In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , and provides AOL members with more than 80 million stock quotes per trading day -- more than six times the typical daily total just two years ago. As the world's largest consumer quote service, AOL recently set a new record, distributing 100 million quotes in a single trading day, and more than ten million quotes in one hour. The Channel also generates over 12 million financial graphs per month for AOL users. An average of 650,000 users access the Quotes & Portfolios area each trading day - with that number growing by an average of 7,000 new users of the area each day. The Personal Finance Channel also offers access to financial information from popular sources such as Business Week, Intuit in·tu·it tr.v. in·tu·it·ed, in·tu·it·ing, in·tu·its Usage Problem To know intuitively. [Back-formation from intuition. , Realtor.com, Bloomberg, Standard & Poor's, Hoover's, MarketGuide, Zacks, Disclosure, Morningstar, Reuters, Investor's Business Daily Investor's Business Daily (IBD) is a national newspaper in the United States, published Monday through Friday, that covers international business, finance, and the global economy. Founded in 1984 by William O'Neil, its headquarters are in Los Angeles, California. , TheStreet.com, The Motley Fool and Sage. And the Personal Finance Channel enables members to do their taxes, research and trade stocks and mutual funds, conduct their online banking, handle real estate and insurance matters, get the most up-to-date business and market news, access detailed financial data and chat with other members about market trends and financial information. About the Companies America Online, Inc., based in Dulles, Virginia Dulles, Virginia is an unincorporated census-designated place located in Loudoun County, Virginia, part of the Washington Metropolitan Area. The headquarters of AOL, Orbital Sciences Corporation and ODIN technologies and the former headquarters of MCI Inc. are located in Dulles. , is the world's leader in branded interactive services and content. America Online, Inc. operates two worldwide Internet online services: America Online, with more than 12 million members; and CompuServe Interactive Services, with approximately 2 million members. America Online, Inc. also operates AOL Studios, the world's leading creator of original interactive content. Other branded Internet services operated by America Online, Inc. include AOL.COM, the world's most accessed Web site from home; AOL NetFind, AOL's comprehensive guide to the Internet; AOL Instant Messenger See AIM. , an instant messaging Exchanging text messages in real time between two or more people logged into a particular instant messaging (IM) service. Instant messaging is more interactive than e-mail because messages are sent immediately, whereas e-mail messages can be queued up in a mail server for seconds or tool available on both AOL and the Internet; and ICQ ("I Seek You") A conferencing program for the Internet from Mirabilis, Tel Aviv, Israel (www.icq.com). It provides interactive chat, e-mail and file transfer and can alert you when someone on your predefined list has also come online. , an instant communications and chat technology on the Internet. Donaldson, Lufkin & Jenrette is a leading integrated investment and merchant bank serving institutional, corporate, government and individual clients. Founded in 1959 and headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , DLJ DLJ Distributor License for Java DLJ Donaldson, Lufkin & Jenrette Inc. DLJ Drive Like Jehu (band) DLJ Defence Laboratory Jodhpur (India) DLJ Dead Letter Journal employs approximately 7,400 people worldwide and maintains offices in 14 cities in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and 10 cities in Europe, Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , and Asia. The company's common stock trades on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors DLJ. has established a popular destination Web site for self-directed investors. The company offers independent investors the convenience and control of automated stock, options, and mutual funds order placement at low commission rates, along with a suite of value-added products and services that can be personalized, including portfolio tracking, Java-based charting and quote applications, real-time market commentary and analysis, news, and other information services. headquartered in Palo Alto, California “Palo Alto” redirects here. For other uses, see Palo Alto (disambiguation). Palo Alto (IPA: /ˌpæloʊˈʔæltoʊ/, from Spanish: palo: "stick" and alto: "high", i.e. . Waterhouse Securities Inc., is a subsidiary of Waterhouse Investor Services, Inc. Other Waterhouse Investor Services, Inc., subsidiaries include Waterhouse National Bank, Waterhouse Asset Management and National Investor Services Corp. Waterhouse Investor Services, Inc. is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of The Toronto- Dominion Bank, North America's twelfth largest bank, whose stock (symbol TD) is listed on the New York Stock Exchange. TD's discount brokerage A discount brokerage is a business that charges clients significantly lower fees than traditional brokerages, typically offering comparatively fewer services and/or advice. business -- including Green Line Investor Services in Canada; Waterhouse Securities Inc. and its divisions Kennedy Cabot and Jack White in the U.S.; and Green Line Investor Services in Australia, the U.K. and Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. -- now represent the world's second largest discount brokerage, with more than 2 million client accounts and over $70 billion (over CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $100 billion) in assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. . Waterhouse Securities, Inc., was established in 1979 and is a member of both the New York Stock Exchange and Securities Investor Protection Corp. Waterhouse Securities can be found on the Internet at www.waterhouse.com.
CONTACT: America Online
Wendy Goldberg, 703/265-2359
or
DLJdirect
Denise Benou Stires, 201/413-2525
or
Dilenschneider Group/E*TRADE
Kim Shepherd, 312/553-0700
or
Waterhouse Securities
Melissa Gitter, 212/806-3522
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