Margin

Your Personal Line of Credit

Smart Borrowing Means Choices

In a well-structured portfolio, cash is as important as stocks and bonds. Yet we find that many investors do not spend as much time researching their cash alternatives – including borrowing options – as they do other investments.

High-interest loans can be devastating to your overall return. The impact is often sufficient to substantially reduce or even negate the positive effect of interest earned on your investments. And as loan rates rise, the result can prove even more expensive. That’s why it’s important to understand your options. Selecting Margin – a personal line of credit that enables you to take advantage of our low borrowing rates and use eligible securities as collateral – may enhance overall profitability.

A Margin account may not be suitable for all investors. Borrowing on Margin and using securities as collateral may involve a high degree of risk. Market conditions can magnify any potential for loss. If the market turns against the investor, he or she may be required to deposit additional securities and/or cash in the account. The securities in the account may be sold to meet the margin call, and the firm can sell the investor’s securities without contacting them. The interest rates charged are determined by the amount borrowed. Please visit sec.gov/investor/pubs/margin.htm for additional information.

Please contact your financial advisor today for complete details on Margin.