Leverage Disclosure

Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If your client borrows money to purchase securities, your client’s responsibility to repay the loan and pay interest as required by the loan agreement remains the same, even if the value of the securities purchased declines. Please ensure that your client reads the Leverage Disclosure Statement within the loan agreement and that you discuss with your client the actual risks and potential benefits of borrowing money to purchase securities.