Edward Jones Investments

Last updated
Edward D. Jones & Co., L.P.
Edward Jones Investments
Company type Private
Industry Investment services
Founded1922;102 years ago (1922)
Founder Edward D. Jones
Headquarters St Louis, Missouri, United States
Key people
RevenueIncrease2.svg US$$12.3 billion (2022) [2]
Increase2.svgUS$1.404 billion (2022) [3]
AUM Increase2.svgUS$1.8 trillion (Q2 2023) [4]
Number of employees
52,000 [5]  (2022)
Parent The Jones Financial Companies
Website www.edwardjones.com

Edward D. Jones & Co., L.P., (d.b.a. Edward Jones Investments), simplified as Edward Jones, [6] is a financial services firm headquartered in St. Louis, Missouri. Founded in 1922, Edward Jones pioneered the branch-office brokerage model in the United States. In 2022, the firm had approximately 52,000 employees, $12.3 billion in revenue, and $1.8 trillion in assets under management.

Contents

Background

Edward Jones serves investment clients in the U.S. and Canada, through its branch network of more than 15,000 locations [7] and 19,000 financial advisors. [8] The company currently has relationships with nearly 8 million clients and $1.8 trillion in assets under management worldwide. The firm focuses solely on individual investors and business owners.

The company is a subsidiary [9] of The Jones Financial Companies, L.L.L.P., a limited liability limited partnership owned only by its employees and retired employees and is not publicly traded. [10] [11] Edward Jones appointed Penny Pennington as managing partner, effective January 2019, making her the firm's sixth managing partner and the only woman to lead a major U.S. brokerage firm. [12]

History

An Edward Jones Investments in Gillette, Wyoming Edward Jones Investments in Gillette, Wyoming.jpg
An Edward Jones Investments in Gillette, Wyoming
Edward Jones in Markham, Ontario EdwardJonesMarkham.jpg
Edward Jones in Markham, Ontario

Edward Jones was founded by Edward D. Jones in St. Louis, Missouri in 1922. [6] (A different Edward D. Jones was a co-founder of Dow Jones. [13] ) Edward Jones' son Edward D. "Ted" Jones was responsible for the creation of the individual branch network, which has spread across rural communities, suburbs and metro cities throughout the US and Canada. The first single broker office was opened by Ted, and staffed by Zeke McIntyre, in Mexico, Missouri. [14] Ted opened another branch office in Pueblo, Colorado, with his brother-in-law Bill Lloyd as manager of the multi-broker office. When Edward D. Jones Sr., found the teletypewriter line bill, he insisted Ted either shut the office down, or find some way to pay for it. Ted Jones paid for it by opening one-broker offices on either side of the teletypewriter line, stretching from St. Louis, Missouri, to Pueblo, Colorado. That is why some of the earliest Edward Jones offices were Dodge City, Hays, Great Bend, Manhattan in Kansas, and Jefferson City in Missouri.[ citation needed ] Small town branch operations took "Wall Street to Main Street" and created a high volume of sales for the company and its brokers. About 10% of its business in the 1960s was in commodity trading due to many clients being cattle farmers. [14]

Edward Jones Investments had the naming rights for the Edward Jones Dome in Saint Louis, Missouri. After the St. Louis Rams decided to move to Los Angeles, Edward Jones Investments exercised its right to terminate its sponsorship, and the facility is now known as The Dome at America's Center. [15]

On December 22, 2004, the Securities and Exchange Commission, NASD and the New York Stock Exchange settled enforcement proceedings against Edward Jones, related to allegations that Edward Jones failed to adequately disclose revenue sharing payments that it received from a select group of mutual fund families that Edward Jones recommended to its customers. [16] [17] The company paid a $75 million fine and disclosed the revenue sharing payments on its website. [18]

On August 13, 2015, the Securities and Exchange Commission required Edward Jones to pay a $20 million fine for overcharging retail customers. [19]

The Edward Jones PAC made two contributions to Senator Josh Hawley since he was elected in November 2018 – a $2,500 contribution [20] to a luncheon in April 2019 and a $1,000 contribution [21] to a virtual event in 2020. In January 2021 Edward Jones paused all contributions to elected officials and political organizations. [20]

The company had 18,796 advisors on staff at the end of 2022. [22]

Business model

Edward Jones branch office, Ypsilanti Township, Michigan Edward Jones branch ypsilanti.JPG
Edward Jones branch office, Ypsilanti Township, Michigan

Edward Jones financial advisors offer commission-based and fee-based financial products. [23] Offices are usually staffed by a financial advisor (licensed broker) and one branch office administrator. The branch office administrator acts as an assistant to the financial advisor, filling the roles of a secretary, manager, and co-worker.

The one-broker-per-office model allows clients to choose their broker directly, and deal with that person exclusively. [24] [25] Edward Jones has 18,892 brokers on staff [26] and more than 15,000 branch offices across the United States. [27] In 2022, the company launched a teaming program that allowed multiple branches to service clients. Prior to its introduction, clients were directed to a single branch office. [28]

Corporate affairs

The company has its corporate headquarters in the City of Des Peres in St. Louis County, Missouri. [29] [30] [31] Adjacent to the company headquarters is the Edward Jones South Campus, located at the intersection of Ballas Road and Manchester Road. [32] The Edward Jones North Campus is located on a zoned plot southeast of the intersection of Interstate 270 and Dorsett Road in the City of Maryland Heights in St. Louis County. [33]

Edward Jones has locations in the United States and Canada. The company had offices in the United Kingdom for 10 years, before selling the division to British brokerage firm Towry Law in 2009. [34]

Controversy

Edward Jones was the subject of a successful anti discrimination suit from its minority stock brokers. There was an allegation that Edward Jones did not allow minority brokers equal access to support programs and lucrative territories. The company paid out 34 million dollars. [35]

Awards and rankings

Fortune magazine ranked Edward Jones at number seven on their Fortune List of the Top 100 Companies to Work For in 2020 based on an employee survey of satisfaction. [36] In 2021, Fortune ranked it number 20. [37]

Related Research Articles

<span class="mw-page-title-main">Investment banking</span> Type of financial services company

Investment banking is an advisory-based financial service for institutional investors, corporations, governments, and similar clients. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by underwriting or acting as the client's agent in the issuance of debt or equity securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, FICC services or research. Most investment banks maintain prime brokerage and asset management departments in conjunction with their investment research businesses. As an industry, it is broken up into the Bulge Bracket, Middle Market, and boutique market.

<span class="mw-page-title-main">Financial services</span> Economic service provided by the finance industry

Financial services are economic services tied to finance provided by financial institutions. Financial services encompass a broad range of service sector activities, especially as concerns financial management and consumer finance.

<span class="mw-page-title-main">Charles Schwab Corporation</span> American financial services company

The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, investing and related services including consulting, and wealth management advisory services to both retail and institutional clients. It has over 380 branches, primarily in financial centers in the United States and the United Kingdom. It is on the list of largest banks in the United States by assets. As of December 31, 2023, it had $8.5 trillion in client assets, 34.8 million active brokerage accounts, 5.2 million corporate retirement plan participants, and 1.8 million banking accounts. It also offers a donor advised fund for clients seeking to donate securities. It was founded in San Francisco, California, and is headquartered in Westlake, Texas.

Dean Witter Reynolds was an American stock brokerage and securities firm catering to a variety of clients. Prior to the company's acquisition, it was among the largest firms in the securities industry with over 9,000 account executives and was among the largest members of the New York Stock Exchange. The company served over 3.2 million clients primarily in the U.S. Dean Witter provided debt and equity underwriting and brokerage as mutual funds and other saving and investment products for individual investors. The company's asset management arm, Dean Witter InterCapital, with total assets of $90.0 billion prior to the acquisition, was one of the largest asset management operations in the U.S.

Prime brokerage is the generic term for a bundled package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return. The prime broker provides a centralized securities clearing facility for the hedge fund so the hedge fund's collateral requirements are netted across all deals handled by the prime broker. These two features are advantageous to their clients.

Edward David Jones Sr. was an investment banker who founded the company today known as Edward Jones Investments.

Raymond James Financial, Inc. is an American multinational independent investment bank and financial services company providing financial services to individuals, corporations, and municipalities through its subsidiary companies that engage primarily in investment and financial planning, in addition to investment banking and asset management. The company is headquartered in St. Petersburg, Florida.

<span class="mw-page-title-main">Ameriprise Financial</span> American financial services company

Ameriprise Financial, Inc. is an American diversified financial services company and bank holding company based in Minneapolis, Minnesota. It provides financial planning products and services, including wealth management, asset management, insurance, annuities, and estate planning.

<span class="mw-page-title-main">Financial adviser</span> Professional who renders financial services to clients

A financial adviser or financial advisor is a professional who provides financial services to clients based on their financial situation. In many countries, financial advisors must complete specific training and be registered with a regulatory body in order to provide advice.

LPL Financial Holdings Inc. was founded in 1989 and is considered the largest independent broker-dealer in the United States. As of 2021 the company had more than 17,500 financial advisors, over US$1 trillion in advisory and brokerage assets, and generated approximately $10.3 billion in annual revenue for the 2023 fiscal year.

<span class="mw-page-title-main">A. G. Edwards</span> Former American financial services holding company

A.G. Edwards, Inc. was an American financial services holding company; its principal wholly owned subsidiary was A.G. Edwards & Sons, Inc., which operated as a full-service securities broker-dealer in the United States and Europe. The firm was acquired by Wachovia to be folded into Wachovia Securities; Wachovia was subsequently acquired by Wells Fargo, and the securities division was folded into Wells Fargo Advisors. The firm provided securities and commodities brokerage, investment banking, trust services, asset management, financial and retirement planning, private client services, investment management, and other related financial services to individual, governmental, and institutional clients.

<span class="mw-page-title-main">Stifel</span> American investment bank

Stifel Financial Corp. is an American multinational independent investment bank and financial services company created under the Stifel name in July 1983 and listed on the New York Stock Exchange on November 24, 1986. Its predecessor company was founded in 1890 as the Altheimer and Rawlings Investment Company and is headquartered in downtown St. Louis, Missouri.

<span class="mw-page-title-main">Ladenburg Thalmann</span> American financial services company

Ladenburg Thalmann Financial Services is a diversified financial services company with two primary business lines: independent brokerage and advisory and investment banking and capital markets. The company is engaged in investment banking, equity research, institutional sales and trading, brokerage services, asset management, and trust services. Ladenburg Thalmann Financial Services is based in Miami, Florida. The company has more than 4,000 financial advisors with approximately $125 billion in client assets.

EFG Holding S.A.E. is an Egyptian financial services company present in the Middle East, North Africa, Sub-Saharan Africa, and South Asia regions and specializes in securities brokerage, asset management, investment banking, private equity and research in addition to finance lease, factoring, microfinance, Financial technology, mortgage, and insurance. EFG Holding serves a range of clients including sovereign wealth funds, endowments, corporations, financial institutions, high-net-worth clients and individual customers. EFG Hermes is listed on the Egyptian Exchange (EGX) and London (LSE) stock exchanges. EFG Hermes has offices in Egypt, the United Arab Emirates (UAE), the Kingdom of Saudi Arabia (KSA), Pakistan, Oman, Kuwait, Jordan, Kenya, Nigeria, UK, United States and Bangladesh with over 4,500 people from 25 nationalities. They serve clients from the Middle East, North Africa, Europe and the United States. Currently, EFG Holding is listed as number 13 in Forbes' Top 50 Listed Companies in Egypt 2023.

<span class="mw-page-title-main">Edward D. "Ted" Jones</span> American businessman

Edward David "Ted" Jones, Jr., the son of the founder of Edward Jones Investments, later ran the firm and built its signature small town brokerage system. He devoted his last years along with his wife Pat Jones to establishing the Katy Trail State Park and the Prairie Fork Conservation Area in Missouri.

Wachovia Securities was the trade name of Wachovia's retail brokerage and institutional capital markets and investment banking subsidiaries. Following Wachovia's merger with Wells Fargo and Company on December 31, 2008, the retail brokerage became Wells Fargo Advisors on May 1, 2009 and the institutional capital markets and investment banking group became Wells Fargo Securities on July 6, 2009.

<span class="mw-page-title-main">Dain Rauscher Wessels</span> American brokerage and investment banking firm

Dain Rauscher Wessels was a brokerage and investment banking firm based in Minneapolis, Minnesota. The firm traced its origins to a number of smaller regional securities firms founded in the 1920s and 1930s.

<span class="mw-page-title-main">Merrill Edge</span> Electronic trading platform provided by BofA Securities

Merrill Edge is an electronic trading platform and investment advisory service that provides self-directed and guided investment options for individuals and businesses. It is a subsidiary of Bank of America and was launched in 2010 after the merger between Merrill Lynch and Bank of America. Merrill Edge offers a wide range of investment products, including stocks, bonds, exchange-traded funds (ETFs), margin lending, mutual funds, and options.

Cetera Financial Group is an independent wealth hub and financial services provider comprising, among other companies, one of the largest families of independent registered investment advisers and broker-dealers in the United States. As such, Cetera provides financial advisors, tax professionals, and financial institutions with market and investment research, client-service platforms and technologies, trade execution and portfolio management services, and back-office support.

PlanMember Securities Corporation was founded in 1982 and is considered one of the 25 largest independent broker-dealers. As of 2020, the company had more than 479 financial advisors, over $14 billion in advisory & brokerage assets, and generated approximately $143.0 million in annual revenue for the 2021 fiscal year.

References

  1. ↑ Edwards, Greg (12 November 2019). "Edward Jones adds Kristin Johnson to C-suite, reports financial results". bizwomen. Retrieved 15 March 2020.
  2. ↑ FORM 10-K (Report). U.S. Securities and Exchange Commission. February 24, 2023. p. 30. Retrieved October 24, 2023.
  3. ↑ FORM 10-K (Report). U.S. Securities and Exchange Commission. February 24, 2023. p. 36. Retrieved October 24, 2023.
  4. ↑ Greenberg, Gregg (August 11, 2023). "Edward Jones head count, assets grow in second quarter". Investment News. Retrieved October 24, 2023.
  5. ↑ FORM 10-K (Report). U.S. Securities and Exchange Commission. February 24, 2023. p. 30. Retrieved October 24, 2023.
  6. 1 2 "Edward Jones History". Archived from the original on August 26, 2017. Retrieved July 22, 2017.
  7. ↑ "Edward Jones to End In-Person Client Meetings". Wealth Management. 2020-03-17. Retrieved 2021-01-06.
  8. ↑ "Edward Jones (Jones Financial Companies) | 2020 Fortune 500". Fortune. Retrieved 2021-01-06.
  9. ↑ "Financial Reports - Edward Jones". Archived from the original on 2014-10-15. Retrieved 2014-10-10.
  10. ↑ "Summary of JONES FINANCIAL COMPANIES LLLP - Yahoo". Archived from the original on 2014-10-18. Retrieved 2014-10-10.
  11. ↑ "Company Overview of The Jones Financial Companies, L.L.L.P." Archived from the original on 2008-04-15. Retrieved 2014-10-10.
  12. ↑ Beilfuss, Lisa (2018-05-08). "Edward Jones Taps Penny Pennington to Lead Brokerage". Wall Street Journal. ISSN   0099-9660 . Retrieved 2019-02-11.
  13. ↑ "Edward Jones History: What's in a name: Edward D. Jones". Archived from the original on 2008-10-10. Retrieved 2008-08-02.
  14. 1 2 "Clipped From St. Louis Post-Dispatch". St. Louis Post-Dispatch. 1967-10-31. p. 20. Retrieved 2020-09-09.
  15. ↑ "Edward Jones pulls name from St. Louis dome". Kansas City Business Journal. Archived from the original on 20 February 2018. Retrieved 22 February 2016.
  16. ↑ "Edward Jones to Pay $75 Million to Settle Revenue Sharing Charges". U.S. Securities and Exchange Commission. 22 September 2004. Archived from the original on 14 February 2017. Retrieved 2017-11-08.
  17. ↑ McCluskey, Molly; Reeves, John; Moscovitz, Ilan (6 December 2012). "Can Your Edward Jones Financial Advisor Really Serve Your Best Interests?". The Motley Fool . Archived from the original on 9 November 2017. Retrieved 2017-11-08.
  18. ↑ "Revenue Sharing Disclosure Information". EdwardJones.com. Archived from the original on 2015-03-25. Retrieved 2017-11-08. Edward Jones' receipt of revenue sharing payments creates a potential conflict of interest in the form of an additional financial incentive and financial benefit to the firm, its financial advisors and equity owners in connection with the sale of products from these product partners
  19. ↑ "Edward Jones to Pay $20 Million for Overcharging Retail Customers in Municipal Bond Underwritings". SEC.gov. 2015-08-13. Archived from the original on 2015-08-13. Retrieved 2015-01-07.
  20. 1 2 "Wealth Managers, Firms Cut Off Political Donations In Wake Of Capitol Attack". Financial Editorial. Retrieved 2021-01-14.
  21. ↑ "EDWARD JONES PAC - committee overview". FEC.gov. Retrieved 2021-01-14.
  22. ↑ FORM 10-K (Report). U.S. Securities and Exchange Commission. February 24, 2023. p. 11. Retrieved October 24, 2023.
  23. ↑ "Edward Jones Financial Advisor Review | SmartAsset.com". SmartAsset. Retrieved 2019-04-29.
  24. ↑ "Company Edward Jones | Cleverism.com". Cleverism. Retrieved 2019-04-29.
  25. ↑ Cussen, Mark P. "How Do Edward Jones and Merrill Lynch Compare?". Investopedia. Retrieved 2019-04-29.
  26. ↑ Greenberg, Gregg (August 11, 2023). "Edward Jones head count, assets grow in second quarter". Investment News. Retrieved January 11, 2024. Edward Jones was up 137 financial advisors at the end of the second quarter compared to the second quarter of last year, bringing its total to 18,892, the company reported Friday.
  27. ↑ Donachie, Patrick (March 17, 2020). "Edward Jones to End In-Person Client Meetings". Wealth Management. Retrieved January 11, 2024. Edward Jones is asking its advisors to meet only virtually with new and existing clients, and is temporarily restricting client access to all of its 15,000 North American branch offices as a result of the burgeoning spread of the coronavirus in the United States, the financial services firm announced today.
  28. ↑ "Edward Jones Moves More Advisors to Teams". Wealth Management. 2023-07-19. Retrieved 2024-02-13.
  29. ↑ "Headquarters & Campus Locations Archived 2009-08-04 at the Wayback Machine ." Edward Jones. Retrieved on August 20, 2010. "Edward Jones 12555 Manchester Road Saint Louis, MO 63131."
  30. ↑ Thimangu, Patrick L. "Des Peres, Mo.-Based Edward Jones Brokerage Looks to Europe for Expansion." St. Louis Post-Dispatch . November 27, 2002. Retrieved on August 19, 2009.
  31. ↑ "St. Louis firms make Fortune’s best workplaces Archived 2012-03-17 at the Wayback Machine ." St. Louis Business Journal . Thursday January 22, 2009. Modified on Tuesday January 27, 2009. Retrieved on August 19, 2009.
  32. ↑ Brown, Elizabeth A. "Long-awaited expansion at Edward Jones under way." St. Louis Business Journal . May 4, 2008. p. 2 Archived 2015-02-09 at the Wayback Machine . Retrieved on April 5, 2013.
  33. ↑ Brown, Elizabeth A. "Long-awaited expansion at Edward Jones under way." St. Louis Business Journal . May 4, 2008. p. 1 Archived 2013-08-16 at the Wayback Machine . Retrieved on April 5, 2013.
  34. ↑ Dunbar, Joy. "Edward Jones sells UK advisory arm to Towry Law". Archived from the original on 24 September 2015. Retrieved 15 April 2015.
  35. ↑ Forbes:July 26, 2021:Edward Jones Co. financial advisors reach 34 million dollar settlement in discrimination case
  36. ↑ Snouwaert, Jessica. "The 25 best companies to work for, based on employee satisfaction". Business Insider . Retrieved April 1, 2020.
  37. ↑ "100 Best Companies to Work For". Fortune . June 2, 2021. Retrieved August 11, 2021.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.