Shares of E-Trade Financial (ETFC - Get Report) slid nearly 3% to $16.20 on volume of around 210,000, according to Nasdaq.com, after the online broker said major shareholder Citadel Investment Group plans to sell 23.95 million E-Trade common shares in a secondary offering.
Goldman Sachs is serving as underwriter of the proposed offering, which includes a 30-day overallotment option for the sale of an additional 3.59 million common shares. The sale is expected to close by or on March 1.
Late Tuesday, E-Trade said in a regulatory filing it received a Wells Notice on Feb. 9 from FINRA informing the company that a preliminary determination was made to discipline it in connection with customer purchases of auction-rate securities.-- Written by Michael Baron in New York.
>To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: firstname.lastname@example.org