A margin loan enables you to borrow against the value of the securities in your account. Suitable investors have traditionally used margin to buy securities by paying only a portion of the actual cost up front and borrowing against the securities in their accounts to pay for the balance. Margin borrowing enables suitable investors to take advantage of attractive opportunities, control more assets and increase potential returns.

However, the use of margin is not limited to purchasing securities. If you have an account that includes margin privileges and cash management services (such as the Active Assets Account), you can obtain an instant loan for any purpose you choose 24 hours a day, anywhere in the world, simply by writing a check or using a debit card.

Margin is not suitable for all investors. Before you borrow on margin, it is important that you understand fully the risks involved. You should examine your investment objectives, financial resources and risk tolerance to determine whether the use of margin is appropriate for you. The securities in your account 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.

Borrowing on margin and using stocks as collateral involves a high degree of risk. Market conditions can magnify any potential for loss. If the market turns against the investor, he or she will be required to deposit additional securities and/or cash in the account. The securities in the account may be sold to meet the margin call, and the firm can sell the investor's securities without contacting them. The interest rates charged are determined by the value of the cash and securities in the account prior to initiating the loan.

Please click on the link below for the Margin Disclosure Statement.