Common use of Borrowing Risk Clause in Contracts

Borrowing Risk. The use of leverage may not be suitable for all investors. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If an investor borrows money to purchase securities, the investor’s responsibility to repay the loan and pay interest as required by the terms of the loan remains the same even if the value of the securities purchased declines. Head Office: Xxxxxxx Xxxx, Xxxxxxx Xxxxxxxxx, Newcastle upon Tyne, NE15 8NX

Appears in 2 contracts

Samples: Discretionary Management Service Agreement, Discretionary Management Service Agreement

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Borrowing Risk. The use of leverage may not be suitable for all investors. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If an investor borrows money to purchase securities, the investor’s 's responsibility to repay the loan and pay interest as required by the terms of the loan remains the same even if the value of the securities purchased declines. Head Office: Xxxxxxx Xxxx, Xxxxxxx Xxxxxxxxx, Newcastle upon Tyne, NE15 8NX.

Appears in 1 contract

Samples: compliance-documents-public.s3.amazonaws.com

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Borrowing Risk. The use of leverage may not be suitable for all investors. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If an investor borrows money to purchase securities, the investor’s responsibility to repay the loan and pay interest as required by the terms of the loan remains the same even if the value of the securities purchased declinespurchased. True Potential Investments Head Office: Xxxxxxx Xxxx, Xxxxxxx Xxxxxxxxx, Newcastle upon Tyne, NE15 8NX8NX T: 0191 242 4866 E: xxxxxxxx@xxxxx.xxx W: xxxxx.xxx

Appears in 1 contract

Samples: Management Service Agreement

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