Leverage Disclosure. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same, even if the value of the securities purchased declines. An investment strategy that uses borrowed money could result in far greater losses than an investment strategy that does not use borrowed money. There may also be tax consequences to you if assets in your account must be sold in order to meet any obligations to repay the borrowed money or any interest owing.
Leverage Disclosure. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only . Should the Client borrow money to purchase securities, the Client’s responsibility to repay the loan as required by his/her terms remains the same even if the value of the securities purchased declines . BHIMI does not lend money to Clients .
Leverage Disclosure. Risks Associated with Borrowing There are some risks and factors that should be considered before borrowing to invest. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only and may not be suitable for all investors. If an investor borrows money to purchase securities, the investor’s responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. I acknowledge that I have read, understand and considered this section regarding some of the risks and other factors associated with borrowing to invest. Is it Right for Me? Borrowing money to invest is risky. I acknowledge that I should only consider borrowing to invest if: • I have a stable income. • I am comfortable with taking risk. • I am comfortable taking on debt to buy investments that may go up or down in value. • I am investing for the long-term. I acknowledge that I should not borrow to invest if: • I have a low tolerance for risk • I am investing for a short period of time. • I intend to rely on income from the investments to pay living expenses. • I intend to rely on income from the investments to repay the loan. • If this income stops or decreases, I may not be able to pay back the loan. I Could End Up Losing Money I understand that: • If the investments go down in value and I have borrowed money, my losses would be larger than had I invested using my own money. • Whether my investments make money or not I will still have to pay back the loan plus interest. I may have to sell other assets or use money I had set aside for other purposes to pay back the loan. • If I used my home as security for the loan, I may lose my home. • If the investments go up in value, I may still not make enough money to cover the costs of borrowing. Tax Considerations I understand that: • I should not borrow to invest just to receive a tax deduction. • Interest costs are not always tax deductible. I may not be entitled to a tax deduction and may be reassessed for past deductions. I may want to consult a tax professional to determine whether my interest costs will be deductible before borrowing to invest. It is important to discuss the risks of borrowing to invest with my Representative before proceeding. Leveraged Accounts may be accepted by Co-operators Financial Investment Services Inc. (CFIS) in certain circumstances.
Leverage Disclosure. Using borrowed money to finance the purchase of Securities involves greater risk than using cash resources only. If you borrow money to purchase Securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the Securities purchased declines.
Leverage Disclosure. Using borrowed money to finance the purchase of securities involves greater risk than a purchase using cash resources only. Should the Client borrow money to purchase securities, the Client’s responsibility to repay the loan as required by his/her terms remains the same even if the value of the securities purchased declines. BPIC does not lend money to Clients.
