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MARGIN DISCLOSURE
DAY TRADING DISCLOSURE
EXTENDED HOURS TRADING
RISK DISCLOSURE
ANTI-MONEY LAUNDERING
USA PATRIOT ACT
PORTFOLIO MARGINING
DISCLOSURE STATEMENT
OTC BULLETIN BOARD &
PINK SHEET RISK DISCLOSURE
DATA INTEGRITY & FAST MARKET
RISK DISCLOSURE
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| OTC BULLETIN BOARD & PINK SHEET RISK DISCLOSURE |
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ProTrade Financial a division of Meridian Equity Partners, inc. does not solicit or recommend transactions, or provide investment advice, to investors in OTC/Bulletin Board and Pink Sheet securities. All transactions in OTC Bulletin Board and Pink Sheet securities are accepted on an unsolicited basis only.
OTC Bulletin Board and Pink Sheet securities represent low priced shares of new or small companies that do not qualify for trading on FINRAAQ or on a national stock exchange. OTC Bulletin Board and Pink Sheet securities include national, regional, and foreign equity issues, warrants, units, American Depositary Receipts (ADRs), Direct Participation Programs (DPPs), and penny stocks.
The inherent risks in trading these securities include, but are not limited to, the following:
- Trading in these securities can be very risky, and may not be appropriate or suitable for you.
- When trading in these securities, you may lose all or part of your invested capital. Any adverse report of a company's deteriorating financial condition, or news which would affect the company's financial condition, may lead to a dramatic decline in the price of a security.
- Frequent name or symbol changes, stock splits, and delistings occur in these securities.
- Typically, all stocks falling into these categories are non-marginable. They cannot be purchased on margin or be used as collateral against margin loans.
- Accurate quotation information, immediate executions, execution reporting, and the delivery of legal trade confirmations might not be readily available.
- Heavy market volatility may prevent or delay order processing.
- These types of securities are frequent targets of fraud or market manipulation, not only because of their generally low price, but also because the reporting requirements for these securities are less stringent than for listed or FINRAAQ traded securities, and no exchange requirements are imposed.
- Due to lower trading volumes in many of these securities, there may be a lower likelihood of orders receiving executions, and current prices may differ significantly from the price quoted at the time of placing your order.
Prior to trading in these types of securities, you should consider your investment objectives, financial resources, risk tolerance and experience. As described above, trading in OTC Bulletin Board and Pink Sheet securities differs significantly from trading in FINRAAQ and listed securities, and you may experience greater market risk. You should be familiar with these risks before trading in them. You should also take the time to read available prospectuses and any other filings, including quarterly and annual financial reports, for a company carefully before trading.
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