To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you: When you open account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.
The Margin Disclosure Statement is intended to provide some basic facts about purchasing securities on margin and to alert you to the risks involved with trading securities in a margin account. Before trading securities in a margin account, it is important to carefully review the written Margin Agreement provided Cheevers, Hand and Angline, LLC through its clearing firm Pershing LLC (a subsidiary of the Bank of New York Mellon Corporation), and to consult with Cheevers, Hand and Angeline, LLC regarding any questions or concerns you may have regarding margin accounts.
When you purchase securities, you have the option of paying for them in full or borrowing part of the purchase price from Pershing. If you choose to borrow funds from Pershing, you will need to open a margin account with Pershing through Cheevers, Hand and Angeline, LLC. The securities purchased are used as collateral for the loan that was made to you or any other indebtedness arising after the initial transaction. If the securities in your brokerage account decline in value, so does the value of the collateral supporting your loan. As a result, Pershing can take action. For instance, Pershing can issue a margin call and/or sell securities or liquidate other assets in any of your brokerage accounts held with Pershing in order to maintain the required equity in the margin account.
It is important that you fully understand the risks involved in trading securities on margin.
These risks include:
For more information, please contact your financial advisor at Cheevers, Hand and Angeline, LLC.