Wedbush Securities
Encyclopedia
Wedbush Securities Inc. is a privately-held financial services
and investment firm that provides private and institutional brokerage, investment banking, equity research
, fixed income
, public finance
, correspondent clearing
, and asset management to individual, institutional and issuing clients. Wedbush Securities was founded in 1955 and is headquartered at 1000 Wilshire Boulevard, Los Angeles
, California
. The firm has over 100 offices, over 125 correspondent offices and close to 1,000 employees nationwide.
Wedbush opened its first office in 1957 located in the Crenshaw district of Los Angeles. Three years later, Robert Werner decided to sell his interest in the firm to Ed Wedbush. In 1971, the firm became members of the New York Stock Exchange
(NYSE), the Depository Trust & Clearing Corporation (DTCC), and the National Securities Clearing Corporation (NSCC). In 1972, the firm began offering correspondent clearing services
, providing trade execution for other brokerage firms. The firm also added an Investment Banking group in 1975.
Wedbush expanded their trading and research capabilities and added several retail brokerage offices. In 2000, the firm launched BrokerInsight, a workstation for order entry, portfolio valuation, and account management and in 2006, the firm became the #1 Liquidity Provider on NASDAQ
. In late 2009, the firm changed its name to Wedbush Securities Inc. from Wedbush Morgan Securities Inc.
On June 13, 2011, Wedbush Securities' parent company, Wedbush Inc. announced the acquisition of Lime brokerage, a provider of low-latency, high-throughput trading technologies and high-volume agency brokerage.
and Technology, and Private Client Services.
platform consists of over 25 analysts, coverage of more than 300 stocks, a consumer channel checking team and Wedbush Decision Metrics (primary, survey-based research). The Equity Research team provides insights into emerging investment opportunities within sectors such as consumer products and services, new media and entertainment, clean technology and industrial growth, and life sciences. The Wedbush Securities Equity Sales and Trading Group delivers information flow and investment ideas as well as best execution
services to small, mid and large cap
clients. The group covers more than 1,100 U.S. and European institutions through their Los Angeles, New York, Boston, San Francisco, Seattle, Dallas and Minneapolis offices and are market maker
s in over 700 NASDAQ
stocks.
The Investment Banking
Group provides clients with financing and advisory services while the Fixed Income
Group provides investment solutions and financing assistance to private client, institutional, municipal and corporate clients.
services for retail broker dealers
, institutional firms, black box trading
firms, professional trading firms, hedge funds, investment banks, and municipal bond underwriters
for a range of services such as prime brokerage
and high-frequency trading
.
, advisory products, and services to private and institutional clients, including wealth management
, retirement planning
, investment management
and financial plan
ing.
On October 20, 2011 it was revealed that Wedbush securities is taking legal action against liquidnet inc for alleged violation of trade secrets.
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
and investment firm that provides private and institutional brokerage, investment banking, equity research
Securities research
Securities research is a discipline within the financial services industry. Securities research professionals are known most generally as "analysts," "research analysts," or "securities analysts;" all the foregoing terms are synonymous...
, fixed income
Fixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
, public finance
Public finance
Public finance is the revenue and expenditure of public authoritiesThe purview of public finance is considered to be threefold: governmental effects on efficient allocation of resources, distribution of income, and macroeconomic stabilization.-Overview:The proper role of government provides a...
, correspondent clearing
Clearing
Clearing may refer to:* Glade , a tract of land with few or no trees in the middle of a wooded area* Deforestation, the clearing away of trees to make farmland* Clearing , the process of settling a transaction after committing to it...
, and asset management to individual, institutional and issuing clients. Wedbush Securities was founded in 1955 and is headquartered at 1000 Wilshire Boulevard, Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. The firm has over 100 offices, over 125 correspondent offices and close to 1,000 employees nationwide.
History
The firm was founded in 1955 by two high school friends, Edward W. Wedbush and Robert Werner, in Los Angeles, California. They each contributed $5,000 to capitalize their new company, Wedbush & Company. The company was named after Wedbush because neither partner wanted a possible business failure named after them and Wedbush lost a coin toss.Wedbush opened its first office in 1957 located in the Crenshaw district of Los Angeles. Three years later, Robert Werner decided to sell his interest in the firm to Ed Wedbush. In 1971, the firm became members of the New York Stock Exchange
New York Stock Exchange
The New York Stock Exchange is a stock exchange located at 11 Wall Street in Lower Manhattan, New York City, USA. It is by far the world's largest stock exchange by market capitalization of its listed companies at 13.39 trillion as of Dec 2010...
(NYSE), the Depository Trust & Clearing Corporation (DTCC), and the National Securities Clearing Corporation (NSCC). In 1972, the firm began offering correspondent clearing services
Clearing
Clearing may refer to:* Glade , a tract of land with few or no trees in the middle of a wooded area* Deforestation, the clearing away of trees to make farmland* Clearing , the process of settling a transaction after committing to it...
, providing trade execution for other brokerage firms. The firm also added an Investment Banking group in 1975.
Wedbush expanded their trading and research capabilities and added several retail brokerage offices. In 2000, the firm launched BrokerInsight, a workstation for order entry, portfolio valuation, and account management and in 2006, the firm became the #1 Liquidity Provider on NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
. In late 2009, the firm changed its name to Wedbush Securities Inc. from Wedbush Morgan Securities Inc.
On June 13, 2011, Wedbush Securities' parent company, Wedbush Inc. announced the acquisition of Lime brokerage, a provider of low-latency, high-throughput trading technologies and high-volume agency brokerage.
Corporate Divisions
The firm is organized into three main divisions: Capital Markets, ClearingClearing
Clearing may refer to:* Glade , a tract of land with few or no trees in the middle of a wooded area* Deforestation, the clearing away of trees to make farmland* Clearing , the process of settling a transaction after committing to it...
and Technology, and Private Client Services.
Capital Markets Group
Wedbush Securities’ ResearchSecurities research
Securities research is a discipline within the financial services industry. Securities research professionals are known most generally as "analysts," "research analysts," or "securities analysts;" all the foregoing terms are synonymous...
platform consists of over 25 analysts, coverage of more than 300 stocks, a consumer channel checking team and Wedbush Decision Metrics (primary, survey-based research). The Equity Research team provides insights into emerging investment opportunities within sectors such as consumer products and services, new media and entertainment, clean technology and industrial growth, and life sciences. The Wedbush Securities Equity Sales and Trading Group delivers information flow and investment ideas as well as best execution
Best Execution
Best execution refers to the obligation of an investment services firm executing orders on behalf of customers to ensure that the prices those orders receive reflect the optimal mix of price improvement, speed and likelihood of execution...
services to small, mid and large cap
Market capitalization
Market capitalization is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding of a publicly traded company...
clients. The group covers more than 1,100 U.S. and European institutions through their Los Angeles, New York, Boston, San Francisco, Seattle, Dallas and Minneapolis offices and are market maker
Market maker
A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn. From a market microstructure theory standpoint, market makers are net sellers of an option to be...
s in over 700 NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
stocks.
The Investment Banking
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
Group provides clients with financing and advisory services while the Fixed Income
Fixed income
Fixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
Group provides investment solutions and financing assistance to private client, institutional, municipal and corporate clients.
Clearing and Technology Group
The Clearing and Technology Group provides clearing and prime brokeragePrime brokerage
Prime brokerage is the generic name for a bundled package of services offered by investment banks and securities firms to hedge funds and other professional investors needing the ability to borrow securities and cash to be able to invest on a netted basis and achieve an absolute return...
services for retail broker dealers
Broker-dealer
A broker-dealer is a term used in United States financial services regulations. It is a natural person, a company or other organization that trades securities for its own account or on behalf of its customers....
, institutional firms, black box trading
Algorithmic trading
In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black-box trading or robo trading, is the use of electronic platforms for entering trading orders with an algorithm deciding on aspects of the order such as the timing, price, or quantity of the...
firms, professional trading firms, hedge funds, investment banks, and municipal bond underwriters
Underwriting
Underwriting refers to the process that a large financial service provider uses to assess the eligibility of a customer to receive their products . The name derives from the Lloyd's of London insurance market...
for a range of services such as prime brokerage
Prime brokerage
Prime brokerage is the generic name for a bundled package of services offered by investment banks and securities firms to hedge funds and other professional investors needing the ability to borrow securities and cash to be able to invest on a netted basis and achieve an absolute return...
and high-frequency trading
High-frequency trading
High-frequency trading is the use of sophisticated technological tools to trade securities like stocks or options, and is typically characterized by several distinguishing features:...
.
Private Client Services Group
The Private Client Services Group provides brokerageBrokerage firm
A brokerage firm, or simply brokerage or broker in context, is a financial institution that facilitates the buying and selling of financial derivatives between a buyer and a seller...
, advisory products, and services to private and institutional clients, including wealth management
Wealth management
Wealth management is an investment advisory discipline that incorporates financial planning, investment portfolio management and a number of aggregated financial services...
, retirement planning
Retirement planning
Retirement planning, in a financial context, refers to the allocation of finances for retirement. This normally means the setting aside of money or other assets to obtain a steady income at retirement...
, investment management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
and financial plan
Financial plan
In general usage, a financial plan is a series of steps which are carried out, or goals that are accomplished, which relate to an individual's or a business's financial affairs. This often includes a budget which organizes an individual's finances and sometimes includes a series of steps or...
ing.
Legal Disputes
In 2011, it was ordered to pay a former bond trader $3.5 million in withheld compensation for "morally reprehensible" conduct, and was ordered to pay an investor about $2.9 million after an arbitration panel decided that a customer's account had been "churned" and looted by a former Wedbush broker.On October 20, 2011 it was revealed that Wedbush securities is taking legal action against liquidnet inc for alleged violation of trade secrets.
Recent Awards
- Wall Street Journal’s Best on the Street 2011 ranked Wedbush analysts #3 in Alternative Energy, Household & Personal Products and #5 in Aerospace & Defense.
- In 2010, The Financial Times and Starmine ranked Wedbush analysts #1 top earnings estimators in Biotechnology and Diversified Consumer Services and #3 in Communication Equipment.
- Forbes ranked Wedbush analysts #1 in Computer Software & Services, #3 in Semiconductors, Apparel and Soap & Cosmetics in 2010.
- Wedbush was named Barron’s best Wall Street Performer for First Half of 2010 and all of 2010.
- Wedbush was picked as the Top Stock Picking Firm for the first half of 2009.