Charles Schwab (SCHW) merger with TD Ameritrade (AMTD)

Charles Schwab completed its merger with TD Ameritrade on 10/6/2020 for Charles Schwab stock.

The SEC filing for this merger can be found through the SEC EDGAR web site at:

The companies structured the merger so as to qualify as a non-taxable event. We will assume they were successful and will treat this merger as a simple merger. The information below is based on the information available from a form S-4/A filed with the SEC. Price information is from websites offering historical prices.

NOTE:The companies state they will endeavor to satisfy the conditions necessary to make this transaction non-taxable. However, they also state there is the possibility the IRS will disagree with their characterization. These instructions assume the companies succeed in their efforts. New instructions will be written, if and when it becomes known the merger should be treated as a taxable event.

The Merger Entry

Go to Transactions > Merger or Accounting > Securities > Record merger of securities depending on the version of the software being used. If you are unfamiliar with merger transactions you can get help at this URL:

Here is the information needed for TD Ameritrade shareholders to complete the merger.

  • Date: 10/6/2020
  • Old Security or Merging Company: TD Ameritrade (AMTD)
  • Price per share of old Security / : Use last AMTD valuation, if needed
  • Cash received: See your broker statement for cash-in-lieu
  • New Security: Charles Schwab (SCHW)
  • New Security Price: 36.75 (Closing price on 10/6/2020)
  • Shares received : 1.0837 x (# of AMTD shares owned)
    • (Remember to include fractional shares.)
    • For example, if you owned 100 AMTD shares, you should receive 1.0837 x 100 = 108.37 SCHW shares.

Save the transaction and the merger has been entered.