MARGIN
DISCLOSURE
In
accord with
securities
industry regulations,
we are furnishing
this document
to you to provide
some basic
facts about
purchasing
treasury securities
on margin,
and to alert
you to the
risks involved
with trading
treasury securities
in a margin
account. Before
trading in
a margin account,
you should
carefully review
the margin
agreement,
which is contained
in the Customer
Agreement.
You should
consult with
a Broker/Dealer
representative
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. If
you choose
to borrow
funds, you
will open
a margin
account.
The securities
purchased
are the firm’s
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, the
firm can
take action,
such as issue
a margin
call and/or
sell securities
or other
assets in
any of your
accounts
held at the
firm 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:
-
You can lose
more funds
than you
deposit
in the margin
account.
A decline
in the value
of
securities
that are
purchased
on margin
may require
you
to provide
additional
funds to
avoid the
forced
sale of those
securities
or other
securities
or assets
in your account(s).
- The
firm can
force
the
sale of
securities
or other
assets
in your account(s).
If the
equity
in your
account
falls below
the maintenance
margin
requirements
or the
firm’s
higher
“house”
requirements,
we can
sell the
securities
or other
assets
in any
of your
accounts
held at
the firm
to cover
the
margin
deficiency.
You also
will be
responsible
for any
short
fall in
the account
after
such a
sale.
- The
firm can
sell
your
securities
or other
assets
without
contacting
you.
Some
investors
mistakenly
believe
that
a firm
must
contact
them
for a
margin
call
to be
valid,
and
that
the
firm
cannot
liquidate
securities
or other
assets
in their
accounts
to meet
the call
unless
the firm
has contacted
them
first.
This
is not
the
case.
Most
firms,
will
attempt
to notify
their
customers
of margin
calls,
but are
not required
to
do so.
However,
even
if
a firm
has contacted
a customer
and provided
a specified
date
by which
the customer
can meet
a margin
call,
the firm
can still
take
necessary
steps
to
protect
its financial
interests,
including
immediately
selling
the
securities
without
notice
to the
customer.
- You
are
not entitled
to
choose
which
securities
or
other
assets
in
your account(s)
are
liquidated
or
sold
to
meet a margin
call.
A decline
in
the
value
of
securities
that
are
purchased
on
margin
may
require
you
to
provide
additional
funds
to
avoid
the
forced
sale
of
those
securities
or
other
securities
or
assets
in
your
account(s).
- The
firm
can
increase
its
“house”
maintenance
margin
requirements
at
any
time
and
is
not
required
to
provide
you
advance
written
notice
These
changes
in
firm
policy
often
take
effect
immediately
and
may
result
in
the
issuance
of
a
maintenance
margin
call.
Your
failure
to
satisfy
the
call
may
cause
the
firm
to
liquidate
or
sell
securities
in
your
account(s).
- You are
not entitled
to
an extension
of
time on
a margin
call.
While
an extension
of time
to meet
margin requirements
may be
available to
customers under
certain conditions,
a customer
does not
have a
right to
the extension.
ADDITIONAL
INFORMATION
The
following legal
information
has been furnished
for your convenience.
PAMCO may modify
any of the
information,
and such modifications
shall take
effect immediately
upon their
posting upon
this Web site.
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