How To Guide For: A Look At The TD Ameritrade -- Scottrade Financial Services Merger -- What Will Be

More merger announcements this time with TD Ameritrade and Scottrade Financial Services. For those of you who are not familiar with TD Ameritrade and Scottrade Financial Services, let me tell you who they are. TD Ameritrade is an American online broker based in Omaha, Nebraska. The TD stands for Toronto-Dominion. TD Ameritrade Holding Corporation is the owner of TD Ameritrade Inc. Services offered include common and preferred stocks, futures, ETFs, option trades, mutual funds, fixed income, margin lending, and cash management services. Scottrade is a TD Ameritrade owned discount brokerage firm that operates both online and at retail locations. So TD Ameritrade is buying Scottrade in a $4 billion cash and stock deal. The deal is a two stage deal in which TD Bank Group will buy Scottrade Bank from Scottrade Financial Services Inc. for $1.3 billion in cash. Scottrade Bank would then be folded into TD Bank and it will buy 11 million shares from TD Ameritrade for $400 million. Then, TD Ameritrade will buy Scottrade Financial Services for $4 billion. What will be gained from this merger -- well for TD Ameritrade the transaction adds significant scale to its retail business, it will also extend its leadership in trading, and more than quadruples the size of its branch network. Savings will come in part from headcount reductions locally and nationwide as the combined company shutters about 150 branches. The deal was announced today and is expected to close on September 30, 2017. Scottrade will convert to TD Ameritrade systems in 2018.To get more in depth information on the TD Ameritrade -- Scottrade Financial Services merger -- click the pictures below to read the articles.