Common use of RISK AND SUITABILITY Clause in Contracts

RISK AND SUITABILITY. When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from Xxxxxx Xxxxxxx & Co., Inc. If you choose to borrow funds from Xxxxxx Xxxxxxx & Co., Inc., you will open a margin account with Xxxxxx Xxxxxxx & Co., Inc. The securities purchased are Xxxxxx Xxxxxxx & Co., Inc. 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, Xxxxxx Xxxxxxx & Co., Inc. can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts, 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. Although Xxxxxx Xxxxxxx & Co., Inc. may try to accommodate you, 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 • Xxxxxx Xxxxxxx & Co., Inc. to avoid the forced sale of those securities or other securities or assets in your account(s). • Xxxxxx Xxxxxxx & Co., Inc. can force the sale of securities or other assets in your account(s). If the equity in your account falls below Xxxxxx Xxxxxxx & Co., Inc. maintenance margin requirements, Xxxxxx Xxxxxxx & Co., Inc. can sell the securities or other assets in any of your accounts held at Xxxxxx Xxxxxxx & Co., Inc. to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale. • Xxxxxx Xxxxxxx & Co., Inc. can sell your securities or other assets without contacting you. Some investors mistakenly believe that their broker must contact them for a margin call to be valid, and that their broker cannot liquidate securities or other assets in their accounts to meet the call unless their broker has contacted them first. This is not the case. Xxxxxx Xxxxxxx & Co., Inc. may attempt to notify its customers of margin calls, but it is not required to do so. However, even if Xxxxxx Xxxxxxx & Co., Inc. has contacted a customer and provided a specific date by which the customer can meet a margin call, Xxxxxx Xxxxxxx & Co., Inc. 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. Because the securities are collateral for the margin loan, Xxxxxx Xxxxxxx & Co., Inc. has the right to decide which securities to sell in order to protect its interests. Xxxxxx Xxxxxxx & Co., Inc. will attempt to liquidate on a “Last-In-First-Out-Basis.” • Xxxxxx Xxxxxxx & Co., Inc. 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 Xxxxxx Xxxxxxx & Co., Inc. 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. Your application for a margin account is subject to the approval of, and may be reject

RISK AND SUITABILITY. When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from Xxxxxx Xxxxxxx & Co., Inc. LLC. If you choose to borrow funds from Xxxxxx Xxxxxxx & Co., Inc.LLC.., you will open a margin account with Xxxxxx Xxxxxxx & Co., Inc. LLC. The securities purchased are Xxxxxx Xxxxxxx & Co., Inc. LLC. 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, Xxxxxx Xxxxxxx & Co., Inc. LLC. can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts, 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. Although Xxxxxx Xxxxxxx & Co., Inc. LLC. may try to accommodate you, 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 • Xxxxxx Xxxxxxx & Co., Inc. LLC. to avoid the forced sale of those securities or other securities or assets in your account(s). • Xxxxxx Xxxxxxx & Co., Inc. LLC. can force the sale of securities or other assets in your account(s). If the equity in your account falls below Xxxxxx Xxxxxxx & Co., Inc. LLC. maintenance margin requirements, Xxxxxx Xxxxxxx & Co., Inc. LLC. can sell the securities or other assets in any of your accounts held at Xxxxxx Xxxxxxx & Co., Inc. LLC. to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale. • Xxxxxx Xxxxxxx & Co., Inc. LLC. can sell your securities or other assets without contacting you. Some investors mistakenly believe that their broker must contact them for a margin call to be valid, and that their broker cannot liquidate securities or other assets in their accounts to meet the call unless their broker has contacted them first. This is not the case. Xxxxxx Xxxxxxx & Co., Inc. LLC. may attempt to notify its customers of margin calls, but it is not required to do so. However, even if Xxxxxx Xxxxxxx & Co., Inc. LLC. has contacted a customer and provided a specific date by which the customer can meet a margin call, Xxxxxx Xxxxxxx & Co., Inc. LLC. 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. Because the securities are collateral for the margin loan, Xxxxxx Xxxxxxx & Co., Inc. LLC. has the right to decide which securities to sell in order to protect its interests. Xxxxxx Xxxxxxx & Co., Inc. LLC. will attempt to liquidate on a “Last-In-First-Out-Basis.” • Xxxxxx Xxxxxxx & Co., Inc. LLC. 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 Xxxxxx Xxxxxxx & Co., Inc. LLC. 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. Your application for a margin account is subject to the approval of, and may be reject