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.
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