DO NOT rely on verbal representations from a sales representative that are not contained in this agreement. The sales representative will ask for information about your investment objectives and personal financial situation, including your income, net worth, and investment experience. The sales representative will rely on this information to make appropriate investment recommendations for you. You will control the investment decisions made in your account unless you decide to give discretionary authority to your sales representative to make investment decisions for you. Do not give discretionary authority to your sales representative without seriously considering whether this arrangement is appropriate for you.
Most investors maintain a cash account that requires payment in full for each a security purchase.
An alternative type of account is a margin account. Buying securities through a margin account means that you can borrow money from the brokerage firm to buy securities and requires that you pay interest on that loan. You will be required to sign a margin agreement disclosing interest terms. This may be a substantial amount of money even after your securities are sold. The margin account agreement generally provides that the securities in your margin account may be lent out by the brokerage firm at any time without notice or compensation to you.