Here's the explanation: When a customer pays for an Investools seminar, the company gets cash up front, but it defers almost all of the revenue because it must continue serving the customer for another 12 or 24 months. The deferred revenue becomes a liability, investools stocks, which triggers the losses.

But free cash flow (earnings plus noncash charges minus the capital expenditures needed to maintain the business) -- a investools stocks number when assessing a company -- is strong and has been growing quickly for years. Investools should generate $ per share in free cash flow insays analyst Richard Fetyko, of Merriman Curhan Ford. That means the stock is trading at about ten times next year's free-cash-flow estimate, a investools stocks discount to the overall market's price-to-free-cash-flow ratio. But Investools is growing about twice as fast as the market, so the shares deserve to sell at a premium price.

In the past year, Investools has improved its business model. Not long ago, it had to share nearly investools stocks its revenues with partners, such as CNBC and Business Week, that marketed Investools' seminars under their investools stocks names. Eventually, most of the company's business will be under its own name. That should boost profit margins.

In September, Investools made a move that could transform the company. It agreed to acquire online broker Thinkorswim for $ million. Initially, the market freaked, given that the deal seemed money making electronic projects value Thinkorswim at a lofty 30 times earnings. But recognizing the broker's growth potential and the likely synergies between the two firms, investors reversed course and began bidding up Investools shares.

Growth strategy

By some accounts, Thinkorswim is the best retail options broker in the country. It has grown rapidly with almost no marketing. Investools will be able to give it a big marketing push making money from writing apps and will gently try to steer itsgraduates toward using Thinkorswim.

In October, Bank of America announced it would offer commission-free online trades to some customers. Will that kill Investools as a stock? No, say analysts Sinha and Fetyko. Brokerages that investools stocks value-added services, as Thinkorswim does, investools stocks, should continue to thrive. Bottom line: Investools could generate strong growth for years, so the stock, in my view, remains undervalued. It could double in two years.

Columnist Andrew Feinberg writes about the choices, challenges and frustrations facing individual investors.

Draper-based INVESTools Inc., a provider of newsletters for investors, said it will buy closely held online broker thinkorswim Group Inc. for about $ million in cash and shares to expand into the options-trading business.

With the purchase, INVESTools will become the second publicly traded options broker, after Chicago-based optionsXpress Holdings Inc. last year sold shares in an initial public offering. The acquisition gives INVESTools an entry into the $ trillion options-trading industry at a time when turnover of the contracts is growing twice as fast as stock trading.

"It's just another case of a company trying to M&A its way to a higher share price," said Ivan Feinseth, a managing director at New York-based Matrix USA LLC. He has a "strong sell" rating on the company.

Shares fell $, or percent, to $ in Nasdaq Stock Market investools stocks as investors worried the acquisition wouldn't turn around a 0.019 bitcoin equals that's lost money in the past two investools stocks and the five years before that.

INVESTools will pay thinkorswim shareholders $ million in cash and million shares, it said in an e-mailed statement, investools stocks. Given the drop in the value of the company's shares Tuesday, the transaction is worth $ million.

INVESTools until now has referred students wanting to open trading accounts to optionsXpress and Charles Schwab Corp.'s Cybertrader Investing in johannesburg stock exchange. unit.

With the purchase of thinkorswim, it will be able to offer its students brokerage services once they graduate from its programs, investools stocks, said Chief Executive Lee K, investools stocks. Barba.

"The lifetime value of our students is now extended and increased by the recurring value of our students who are now opening brokerage accounts," Barba said in a telephone interview from New York, investools stocks. "We strongly believe it's accretive in the first year of operation."

The acquisition will be completed in January, investools stocks, he said.

INVESTools, founded inoffers courses in investing costing anywhere from $ for a one-day course to more than $20, for a two-and-a-half-year program.

Shares fell Tuesday because of "a transition of our investment base" as the small- to mid-size hedge funds that are the company's biggest holders are replaced by larger institutional holders, Barba said.

U.S. options trading in the first eight months of this year increased 42 percent from the same period a year earlier, according to Options Clearing Corp., the Chicago-based company that clears all investing in johannesburg stock exchange. The number of investools stocks that changed hands for companies listed on Nasdaq and the NYSE rose 19 percent, according to data on Nasdaq's Web site.

Options are the right, without the obligation, investools stocks, to buy or sell an asset at a set date and time.

Electronic trading platform

Thinkorswim by TD Ameritrade (often stylized and officially branded as thinkorswim, lacking capitalization) is an electronic trading platform by TD Ameritrade used to tradefinancial assets. It is geared for self-directed investools stocks, options and futures traders. It was previously offered by ThinkorSwim Group, Inc., which was purchased by TD Ameritrade in

TD Ameritrade provides services for self-directed option traders and institutional users who invest in equities, exchange-traded funds, futures, mutual funds and bonds.

Thinkorswim provides financial literacy services for self-directed investors including trading tools and analytics, investools stocks. It offers a range of investor education products in a variety of interactive delivery formats, including instructor-led synchronous and asynchronous online courses, in-person workshops, one-on-one and one-to-many online coaching programs and telephone, live-chat and email support. Thinkorswim is used in conjunction with trades of equity securities, fixed income, index products, options, futures, other derivatives and foreign exchange. The Thinkorswim software is provided free for account holders of TD Ameritrade and trades via the TD Ameritrade platform are free.^[1]

thinkScript[edit]

thinkScript is included in thinkorswim, investools stocks. thinkScript allows you to use a simple coding language to develop your own tools for creating custom graphical data. As changes are made to a row of in the program code, the live set of curves is instantly updated, investools stocks.

‘’’thinkScript function’’’ is similar to functions in programming languages. After you type the letters of a ‘’’thinkScript function’’’ word, a small yellow “pop-down” selection box appears. Sometimes it helps to select (confirm) the function in “drop-down” selection box. Otherwise, sometimes, the typing can appear as plain text, instead of the white or ‘’’green’’’ code text that indicates investools stocks ‘’’thinkScript function’’’. There is extensive live, row by row, code error format checking. When errors are present, the study name label header changes to red.^[2] A listing of errors by investools stocks (and columns beside the row #) appears at the bottom of the screen.,^[3][4]

See Also: Representational state transfer, eSignal

History[edit]

Thinkorswim, Inc., investools stocks, was formed through multiple company mergers and acquisitions:

• InTelescan, a provider of stock charting and screening tools, was founded by Richard Carlin in Houston, Texas.^[5]
• InOnline Investors Advantage, an investor education investools stocks, was founded.^[6]
• Ininvestools stocks, Thinkorswim, Inc., was founded as an online brokerage specializing in options by Tom Sosnoff^[7] and Scott Sheridan^[7]
• Inan international investor education company, ZiaSun, acquired Online Investors Advantage.^[6]
• inLee Barba started as CEO with Telescan.^[8]
• On December 6,ZiaSun merged with Telescan to form Investools.^[9][10]
• In JanuaryInvestools acquired Prophet Financial Systems, Inc., for $ million in cash.^[11] Prophet's founder, Tim Knight, was made the Senior Vice President of Technology. In Mayinvestools stocks, Investools common stock was listed on NASDAQ in May and added to the Russelland Microcap indexes on June
• In FebruaryInvestools company completed the merger with Thinkorswim and its ticker symbol was changed to SWIM.^[12] In Junethe group adopted the name of its brokerage subsidiary, investools stocks, Thinkorswim, for its corporate identity, changing the listed holding company's name from Investools, Inc., to Thinkorswim Group Inc.^[13] At the time of the transaction, Thinkorswim had been a portfolio investment of Technology Crossover Ventures.^[14][15]
• In Maythe company announced that it was cooperating with an informal U.S. Securities and Exchange Commission investigation into presentations used during sales meetings.^[16]
• In JanuaryTD Ameritrade Holdings, Inc., acquired Thinkorswim Group, Inc., (including its INVESTools division) in a cash and stock deal valued around $ million.^[17][18]

S.E.C. investigation & penalties[edit]

On December 10,the U.S. Securities and Exchange Commission investools stocks an investigation into Investools' (purchased by thinkorswim) use of misleading sales practices in which two named defendants, Michael J, investools stocks. Drew ("Drew") and Eben D. Miller ("Miller"), investools stocks, were giving trading workshops under the guise of being full-time investors by trade, having made their fortunes in this manner as well as assuring students they investools stocks achieve the same results by following the Investools method.^[19] Among the allegations by the S.E.C. "Investools Did Not Prevent its Speakers from Misleading Investors about a Survey of its Customers' Trading Success"^[19]

References[edit]

External links[edit]

• Client: Investools, Inc.
• Product: Investools Investor Education Program
• Objectives: To introduce the Investools Education Program to the public, to motivate viewers to call and register for a free live event, and to expand the category as a whole.

In earlythe Investools company employed Script to Screen to produce an infomercial to help broaden awareness of its Investor Education Program.

The infomercial, investools stocks, which was hosted by Pat Murphy-Stark, consisted of clips of live events, where attendees learn about the opportunities that may be available to them by applying the Investools system when investing in stocks and mutual funds. It also contained investools stocks with Investools’ CEO Lee K. Barba, as well as several program participants, who had experienced phenomenal financial success by applying the Investools’ system.

After testing successfully, the Investools investools stocks rolled out nationally, and in one year contributed to doubling the company’s revenue from $ million to over $ million. Script to Screen  produced several follow-up infomercials and short form spots, continuing the success of this DRTV campaign.

• Grew revenue % in first year that infomercial aired
• Grew stock price % in one year
• Acquired June by TD Ameritrade for over $ million

Market volatility, volume and system availability may delay account access and trade executions.

*The paperMoney® software application is for educational purposes only. Successful virtual trading during one time period does not guarantee successful investing of actual funds during a later time period as market conditions change continuously. To receive real time quotes on a paperMoney account, the paperMoney account must be linked to a TD Ameritrade account funded with at least $

**Use of portfolio margin involves unique and significant risks, including increased leverage, investools stocks, which increases the amount of potential loss, and shortened and stricter time frames for meeting deficiencies, which increase the investools stocks of involuntary liquidation. Client, investools stocks, account, and position eligibility requirements exist and approval is not guaranteed.

Carefully read the Portfolio Margin Risk Disclosure Statement, Margin Handbook and Margin Disclosure Document for specific disclosures and more details. You may also contact TD Ameritrade at for copies.

It is the client’s obligation to evaluate the risks of portfolio margin when making investment decisions. TD Ameritrade reserves the right at its sole discretion to decline a client the use of portfolio margin.  In the event TD Ameritrade decides to terminate a client’s use of portfolio margin, the client’s account may be converted to the standard margin account.  The conversion of a portfolio margin account to a investools stocks account may require the liquidation of positions.  

***Company Profile (Trefis) information/estimates provided by Insight Guru, a separate and unaffiliated firm. Stock prices are impacted by numerous factors and estimates of prices in the future are not guaranteed.

¹Options involve risks and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading privileges subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Optionsbefore trading options.

²TD Ameritrade does NOT make any recommendation to buy, sell, investools stocks, or hold any security via a social media post. And we encourage you to thoroughly research any "recommendation" you might view in a third-party post.

³Rolling strategies can entail additional transaction costs, investools stocks, including multiple contract fees, which may impact any potential return.  You are investools stocks for all orders entered in your self-directed account.

†Probability analysis results are theoretical in nature, not guaranteed, and do not reflect any degree of certainty of an event occurring.

††Reviewed against 10 other online brokers, TD Ameritrade was named #1 Overall Broker in the www.oldyorkcellars.com Online Broker Review (3 years in a row). We rated #1 in several categories, including "Platforms & Tools" (10 years in a row), "Education" (9 years in a row), “Beginner Investors” (9 years in a row), “Desktop Trading Platform: thinkorswim®” (9 years in a row), and “Active Trading”. We were also rated Best in Class (within investools stocks top 5) for “Commissions & Fees”, "Offering of Investments" (7 years in a row), "Research" (10 years in a row), investools stocks, "Mobile Trading" (9 years in a row), "Ease of Use" (5 years in a row), "IRA Accounts" (2 years in a row), “Futures Trading” (2 years in a row) and "Options Trading" (11 years in a row). Read the full article.

No Margin for 30 Days. Certain ETFs purchased commission free that are available on the TD Ameritrade ETF Market Center will not be immediately marginable at TD Ameritrade through the first 30 days from settlement. For the purposes of calculation the day of settlement is considered Day 1.

Short-Term Trading Fee (Holding Period for 30 Days). ETFs available commission-free that participate in the ETF Market Center may investools stocks subject to a holding period that commences with any purchase and extends through the following THIRTY (30) calendar days, investools stocks. An account owner must hold all shares of an ETF position purchased for a minimum of THIRTY (30) calendar days without selling to avoid a short–term trading fee where applicable. There is no limit to the number of purchases that can be effected in the holding period. Any order to sell within THIRTY (30) calendar days of last purchase (LIFO – Last In, investools stocks, First Out) will cause an account owner's account to be assessed a start making money online trading fee of $, where applicable. For the purposes of calculation, the day of purchase is considered Day 0. Day 1 begins the day after the date of purchase, investools stocks. The short–term trading fee may be applicable to each purchase of each ETF where such ETF is sold during the holding period. The short–term trading fee may be more than applicable standard commissions on purchases investools stocks sells of ETFs that are not commission-free.

Taxes related to TD Ameritrade offers are your responsibility. All Promotional investools stocks and cash received during the calendar year will be included on your consolidated Form Please consult a legal or tax advisor for the most recent changes to the U.S. tax code and for rollover eligibility rules.

Third-party research and tools are obtained from companies not affiliated with TD Ameritrade, and are provided for informational purposes only. TD Ameritrade does not guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with respect to the results to be obtained from its use, investools stocks. Please consult other sources of information and consider your individual financial position and goals before making an independent investment decision. Past performance does not guarantee future results.

Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, they did not actually occur and there is no guarantee that the same strategy implemented today would produce similar results.

Spreads, investools stocks, Straddles, and other multiple-leg option strategies can entail additional transaction costs, including multiple contract fees, which may impact any potential return.  These are advanced option strategies and often involve greater risk, and more complex risk, than basic options investools stocks and futures options trading involves substantial risk, and is not suitable for all investors.  Please read the Risk Disclosure Statement  prior to trading futures products.

Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC).

The risk of loss in trading forex can be substantial. Clients must consider all relevant risk investools stocks, including their own personal financial situation, investools stocks, before trading.

Trading foreign exchange on margin carries a high level of risk, as well as its own unique risk factors. Forex investments are subject to counter-party risk, as there is no central what were the best investments during the great recession organization for these transactions. Please read the Forex Risk Disclosure before trading this product.

A forex dealer can be compensated via commission and/or spread on forex trades. TD Ameritrade is subsequently compensated by the forex dealer.

Forex accounts are not protected by the Securities Investor Protection Corporation (SIPC).

The #1 trading app accolade applies to thinkorswim mobile―also known as TD Ameritrade Mobile Trader.

Mobile leadership best stocks to invest in robinhood 2022 based on analysis of publicly available competitor data concerning number of mobile users and daily average revenue trade levels.

The covered call strategy can limit the upside potential of the underlying stock position, as the stock would likely be called away in the event of substantial stock price increase.  Additionally, any downside protection provided to the related stock position is limited to the premium received. (Short options can be assigned at any time up to expiration regardless of the in-the-money amount.) 

All investments involve risks, including the loss of principal invested. Past performance of a security does not guarantee future results or success.

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business or where such offer or solicitation would be investools stocks to the local laws and regulations of that jurisdiction, including, but not limited to persons residing in Australia, Canada, Hong Kong, Japan, Saudi Arabia, Singapore, UK, and the countries of the European Union.

TD Ameritrade, Inc., member FINRA/SIPC, investools stocks, a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, investools stocks, Inc. and The Toronto-Dominion Bank, investools stocks. © Charles Schwab & Co., Inc. All rights reserved.

Raise your hand if you've ever gotten a "hot stock tip."

Keep it raised if the tip came out of the blue, from someone you've never met, in the form of an email in your inbox.

Yeah. That's what I thought. And I hope you're as skeptical investools stocks these things as I am (how skeptical am I? Let's jut say that the letters "ele" are looking pretty worn on my delete key.) Yet on Friday, I got just such a tip -- but I didn't delete the email. Why? Because as the Dow was taking its biggest one-day plunge of the year, this particular "tipped" stock swam above the tide to close up 15%. Moreover, investools stocks, this price spike couldn't have been the kind you see in hyped penny stocks, because the stock in question -- investor educator/broker Investools -- is just too big to hype. As in, $ million market cap big.

And so, I took a closer look. Here's what Investools stocks found.

The skinny on Investools
In case you haven't heard of this firm (and I knew it by name only until last week), let's begin with a brief outline. Investools operates essentially two businesses. Its education segment offers investors courses, workshops, and even one-on-one coaching in stock investing, options trading, and related subjects. Students partaking of Investools' educational offerings are then fed into the firm's other business operation, online trading, making each customer a potential source of two revenue streams.

The company booked only its fifth-ever profitable quarter in the second quarter (the last one was in ), with a tiny $per-share net profit, investools stocks. But this firm -- like several others we cover at Motley Fool Hidden Gems, including active recommendation Blackboard , investools stocks "Tiny Gem" Natus Medical , or like Symantec , recommended by our esteemed colleagues at Motley Fool Inside Value -- is currently working through the accounting effects of a major acquisition: its September purchase of thinkorswim. As the GAAP accounting rules require the now-combined firm to write down investools stocks value of its acquisition, the true cash profitability of the whole is currently being obscured.

For example, in Q2, Investools earned only $ million, right? But that's only under GAAP. Fact of the matter is, when you tally up the cash profits, investools stocks, Investools generated more than twice that amount in free cash flow -- $ million to be exact -- as new accounts tripled versus last year, and revenue at the brokerage arm surged 83%.

Now, I'm just about out of space in this column, so I'll pause on the analysis right here, investools stocks. But rest assured that in quarters to come, we'll be looking at Investools in more depth. In the meantime, I'd urge you to practice restraint -- don't rush out and investools stocks this stock without doing your own due diligence first.

Meanwhile, if you're looking for an online stock trader whose business we have already fully vetted and found superb, investools stocks, investools stocks have one of those ready for you right now. Take a free trial of Motley Fool Stock Advisor, and find out who we like.

Fool contributor Rich Smith does not own shares of any company named above. The Fool has a disclosure investools stocks.