IT IS IMPORTANT THAT YOU READ AND UNDERSTAND THIS INFORMATION PRIOR TO OPENING A MARGIN ACCOUNT.
Cary Street Partners LLC (hereinafter referred to as “CSP”) and First Clearing, LLC are furnishing this document to you 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 stocks in a margin account, you should carefully review the margin agreement provided by CSP. Please consult your Financial Advisor regarding any questions or concerns you may have with your margin accounts.
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price through First Clearing LLC. If you choose to borrow funds from First Clearing LLC, you will open a CSP margin account. The securities purchased are the collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, CSP or First Clearing LLC can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with CSP, in order to maintain the required equity in the account.
It is important that you fully understand the risks involved in trading securities on margin. These risks include the following: