Before purchasing stocks in a margin account, you should carefully review the Janney Montgomery Scott LLC Margin Agreement. Consult your Financial Consultant regarding any questions you may have with a margin account.

When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from Parker/Hunter, a division of Janney Montgomery Scott LLC. If you choose to borrow funds from us, you will open a margin account with the firm. The securities purchased 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, and, as a result, the firm can take action, such as issue a margin call and/or sell securities in your accounts, in order to maintain the required equity in the account.

It is important that you fully understand the risks involved in purchasing securities on margin.

These risks include the following:

• You can lose more funds than you originally 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 avoid the forced sale of those securities or other securities in your account.
  
• The firm can force the sale of securities in your account. If the equity in your account falls below the maintenance margin requirements under the law, or the firm's higher “house” requirements, the firm can be forced to sell the securities in your account to cover the margin deficiency. You also will be responsible for any shortfall in the account after such a sale.
  
• The firm can sell your securities without contacting you. Some investors mistakenly believe that a firm must contact them for a margin call to be valid, and that the firm cannot liquidate securities in their accounts to meet the call unless the firm has contacted them first. This is not the case. Most firms, including Parker/Hunter, will attempt to notify clients of margin calls, but they are not required to do so. However, even if a firm has contacted a client and provided a specific date by which the client can meet a margin call, the firm can still take necessary steps to comply with Federal Reserve Board Regulation T and to protect its financial interests, including immediately selling the securities without notice to the client.
  
• You are not entitled to choose which security in your margin account is liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, the firm has the right to decide which security to sell in order to meet the margin requirements.
  
• The firm can increase its “house” maintenance margin requirements at any time and is not required to provide you with advance written notice. These changes in firm policy can take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause the firm to liquidate or sell securities in your account.
  
• 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 clients under certain conditions, a client does not have a right to the extension.
  
  

Contact your Financial Consultant with any questions.