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When you buy securities on margin, those securities are the firm's collateral for the
margin loan to you. If the securities in your account decline in value, so does the value
of the collateral supporting your loan. As a result, the firm may need to take action to maintain the required equity in the account. The firm may issue a margin call and/or sell securities and/or other assets in any of your accounts held with the firm.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following:
- You can lose more funds than your deposit in the margin account.
- The firm can force the sale of securities or other assets in your account.
- The firm can sell your securities or other assets without contacting you.
- You are not entitled to decide which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
- The firm may increase its “house” maintenance margin requirements at any time and is not required to provide you with advance written notice.
- You are not entitled to an extension of time on a margin call.
For more information, please contact your Financial Advisor.
Buckman, Buckman, & Reid, Inc.
Securities/Broker Dealer
3.NF-BUC-01 0908
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