Risk Involved in Trading Debt Securities. Debt securities include bonds and notes which represent loans to an entity (such as a government or corporation) in which the entity promises to repay the bondholders or note-holders the total amount borrowed. That repayment in most cases is made on maturity although some loans are repayable in installments. Unlike shareholders, holders of bonds and notes are not owners of an entity but its creditors. In return for the loan, the entity will usually compensate the bondholders or note-holders with interest payments during the life of the bond or note. The interest rate on bonds and notes can be a fixed or floating rate. 1. This is NOT a principal protected investment. The price of this product may fall in value rapidly and investors may suffer a total loss of their initial investment. Besides, The rate of return of this product cannot be estimated precisely 2. There are many factors that affect the market value and the rate of return of the debt securities, including but not limited to market risk, credit risk, liquidity risk, interest rate risk, exchange rate risk, index risk, intermediary risk, corporate action /extraordinary events. If in doubt, investors are strongly advised to seek independent and professional advice from legal, tax, financial and other professional advisers. Whilst care has been taken in the preparation of this document, no responsibility is accepted for the completeness, adequacy or accuracy of its contents. To learn more, you may visit the websites of Hong Kong Exchanges and Clearing Limited (xxxx://xxx.xxxx.xxx.xx) and the Securites and Futures Commission of Hong Kong (xxxx://xxx.xxx.xx).
Appears in 5 contracts
Samples: Client Master Agreement, Client Master Agreement, Client Master Agreement
