Tuesday May 28, 7:30 am Eastern Time
Press Release
SOURCE: Siebert Financial Corp.
Siebert Financial Corp. Acquires
Accounts from TradeStation Securities,
Inc.
NEW YORK, May 28 /PRNewswire-FirstCall/ -- Siebert Financial
Corp. (Nasdaq: SIEB - News) today announced the purchase, in an
all-cash transaction, of certain retail discount brokerage accounts of
TradeStation Securities, Inc.
The purchase price was not disclosed. The acquisition of the
accounts, which TradeStation earlier acquired from Newport Discount
Brokerage, Inc., is expected to be immediately accretive to earnings.
Muriel Siebert, president and chairwoman of Siebert, said: "These
accounts, which have been serviced by TradeStation Securities' main
office in Boca Raton, Fla., will be seamlessly integrated into our Boca
Raton office, or any of our other offices, at the customer's request. The
TradeStation customers will be offered our award-winning Internet
service, broader product line, including municipal bonds and other
fixed-income offerings, and a high level of personal attention by live
brokers and customer service representatives on the telephone and at
our branches."
"We are sure they will appreciate our comprehensive monthly account
statements detailing profit/loss for securities held -- quarterly, by tax lot
-- and our low commission and margin rates which we negotiate for
active traders and large-balance accounts," Ms. Siebert said.
Ms. Siebert added: "The customers will be converted to Siebert's
clearing firm and begin to receive the benefits of being Siebert
customers in August 2002. This transaction is part of our continuing
effort to expand our customer base by acquisition. We have five
offices in Florida, and we hope this will be followed by other
acquisitions in the Florida area and elsewhere."
Ms. Siebert noted that over the past year, in a difficult market environment, other major discount
brokers have raised commission rates, added inactivity fees and imposed or raised minimum
balances for avoiding them, while Siebert has held the line with no required minimum balances, no
inactivity penalties and no increase in commissions or fees.
Ms. Siebert, who established one of the first discount brokerages in 1975 when commissions
became negotiable, said she believes that when people have already lost money in an unforgiving
market environment, brokers should not penalize them further with increased fees and trading
commissions.
Siebert recently announced an exclusive strategic alliance with Intuit Inc., the maker of Quicken
software products, to offer discount brokerage services to Quicken and Quicken.com users. The
brokerage service will be launched later this year.
Siebert is the only discount broker to rank in SmartMoney's top three for the past four years and the
only online broker to rank in Kiplinger's Personal Finance Magazine's top three for the past three
years. Last year, it ranked as one of Money's best online brokers, and just received a four-star
ranking, the highest given, in Barron's 2002 Online Brokers Survey.
Siebert Financial Corp. is a holding company, which conducts all its operations through its wholly
owned subsidiary, Muriel Siebert & Co., Inc. ("Siebert"). A member of the New York Stock
Exchange, Siebert was one of the first stock brokerage firms in the U.S. to adopt a discounted
commission schedule on May 1, 1975, when discounting was first permitted. Siebert conducts its
municipal investment banking activities through Siebert, Brandford, Shank & Co., LLC, a separate
affiliate specializing in municipal and financial advisory services.
Siebert is based in New York City with additional retail branches in Boca Raton, Palm Beach,
Surfside and Naples, Fla.; Beverly Hills, Calif., and Jersey City, N.J. In addition, Siebert, Brandford,
Shank & Co. has offices in New York City, San Francisco, Los Angeles, Seattle, Houston, Chicago,
Detroit and Dallas.
Certain statements in this press release, including those regarding future potential profitability, are
forward-looking and actual results may differ materially. Among the factors that could cause actual
results to fluctuate and differ are the following: changes in general economic and market conditions,
fluctuations in volume and prices of securities, changes and prospects for changes in interest rates
and demand for brokerage and investment banking services, increases in competition within and
without the discount brokerage business through broader service offerings or otherwise, competition
from electronic discount brokerage firms offering greater discounts on commissions than Siebert,
prevalence of a flat fee environment, decline in participation in equity or municipal finance
underwriting, decreased ticket volume in the discount brokerage division, limited trading
opportunities, increases in expenses, changes in net capital or other regulatory requirements and
risks related to the Year 2000. As a result of these and other factors, Siebert may experience
material fluctuations in its operating results on a quarterly or annual basis, which could materially and
adversely affect its business, financial condition, operating results, and stock price. Siebert
undertakes no obligation to publicly release the results of any revisions to these forward-looking
statements, which may be made to reflect events or circumstances after the date when such
statements were made or to reflect the occurrence of unanticipated events. An investment in Siebert
involves various risks, including those mentioned above and those, which are detailed from time to
time in Siebert's Securities and Exchange Commission filings.
CONTACT: Muriel Siebert, President and Chairwoman of Siebert Financial
Corp., +1-212-644-2418
SOURCE: Siebert Financial Corp.
