Citadel Investment Group sold 13.9 million shares of E-Trade Corp. stock and set up a plan to sell much more, according to regulatory filings.

After the sale and a recent capital raise that further diluted E-Trade's stock, Citadel now owns 14.9% of the company's shares, down from more than 17%. Citadel recently took a spot on E-Trade's board.

Citadel also set up a prearranged stock-sale plan that will allow it to sell up to 120 million E-Trade shares between Aug. 31 and Oct. 31.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.