Brokerage Account Application (Non-IRA)

Transcription

1 Brokerage Account Application (Non-IRA) One Beacon Street Boston, MA (800) brownco.com For BrownCo Use Only: Account Number Instructions: Please complete in full and print clearly in pen. If you have any questions or would like additional forms or copies of the Customer Agreements, call (800) or log on to brownco.com. The minimum initial investment is $15,000 in cash and/or eligible negotiable securities. Special promotional offers may have different requirements. Checks should be made payable to BrownCo, LLC. Wire transfer instructions are available on brownco.com. Certificates must be endorsed exactly as they are registered on each face and BrownCo, LLC must be written on the line between appoint and attorney. When transferring securities, the registration of your accounts must be identical. If they are not, please call (800) In this application, BrownCo, LLC may be referred to as BrownCo, LLC or BrownCo. 1 Type of Account Please select ONLY ONE account type. BrownCo opens all accounts as margin unless we indicate otherwise. Individual Joint Tenants with Rights of Survivorship Custodial (UGMA/UTMA) Under the State of Uniform Gift/Transfer to Minor s Act (cash accounts only) (if state left blank, minor s state of residence is default) Joint Tenants in Common List allocation percentages: Owner % Joint Owner % (Percentages must add up to 100%. Default will be 50/50.) 2 Name and Address A. Owner/ Minor B. Joint Owner/ Custodian Mr. Mrs. Ms. Dr. Mr. Mrs. Ms. Dr. First Name Middle Initial First Name Middle Initial Last Name Last Name Social Security Number Social Security Number Permanent Street Address (required information no P.O. boxes) Check if all information below is same as Primary Owner s. Permanent Street Address (required information no P.O. boxes) State Zip Code State Zip Code Mailing Address (if different from permanent address) Mailing Address (if different from permanent address) State Zip Code State Zip Code Evening Phone Number ( ) ( ) Daytime Phone Number ( ) ( ) Evening Phone Number Daytime Phone Number

2 3 Personal and Employment Information A. Owner/ Minor Marital Status Single Married Divorced Widowed Date of Birth (MM/DD/YYYY) Number of Dependents B. Joint Owner/ Custodian Marital Status Single Married Divorced Widowed Date of Birth (MM/DD/YYYY) Number of Dependents Mother s Maiden Name Mother s Maiden Name Country of Citizenship US Other We do not require the employment information of a minor. Employment Status (please select one) Employed Self-Employed Not Employed Retired Source of Income (if retired or not employed) Investments Pension/Social Security Spouse s Income Other (please specify) Occupation Country of Citizenship US Other Employment Status (please select one) Employed Self-Employed Not Employed Retired Source of Income (if retired or not employed) Investments Pension/Social Security Spouse s Income Other (please specify) Occupation Type of Business Type of Business Name of Employer Name of Employer Address of Employer Address of Employer State Zip Code State Zip Code I am affiliated with or employed by a stock exchange, an exchange member firm, a municipal securities dealer or the NASD. Please enclose your employer s approval letter (NYSE Rule 407). I am a director, 10% shareholder or policymaking officer of a publicly traded company. (BrownCodoes not accept Rule 144 or restricted securities.) Company Name Stock Exchange Symbol/CUSIP Number I am an employee of JPMorgan Chase & Co., a subsidiary or affiliate. Enter Global ID I am affiliated with or employed by a stock exchange, an exchange member firm, a municipal securities dealer or the NASD. Please enclose your employer s approval letter (NYSE Rule 407). I am a director, 10% shareholder or policymaking officer of a publicly traded company. (BrownCodoes not accept Rule 144 or restricted securities.) Company Name Stock Exchange Symbol/CUSIP Number I am an employee of JPMorgan Chase & Co., a subsidiary or affiliate. Enter Global ID I am a professional trader.* *(1) Registered or qualified with the SEC, CFTC, any state securities agency, securities exchange or association, or any commodities or futures contract market or association; (2) Engaged as an investment adviser as defined in Section 202(a)(11) of the Investment Advisers Act of 1940; (3) Employed by a bank or other organization exempt from registration under federal and/or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt. I am a professional trader.* *(1) Registered or qualified with the SEC, CFTC, any state securities agency, securities exchange or association, or any commodities or futures contract market or association; (2) Engaged as an investment adviser as defined in Section 202(a)(11) of the Investment Advisers Act of 1940; (3) Employed by a bank or other organization exempt from registration under federal and/or state securities laws to perform functions that would require registration or qualification if such functions were performed for an organization not so exempt. 4 Referral Information I heard about BrownCo from (please select one): TV Print/Publication Internet Personal Referral Direct Mail Other/Don t Know If you have an offer code, enter it here If you have another BrownCo account, provide the account number here (For internal use only) MK060

3 5 Household Financial Information To open an account you must have $40k income, $50k net worth and 5 years investing experience. Investment Objectives Trading Profits/Speculation is required for option trading. Overall investment objectives for this account (choose all that apply, must choose at least one) Trading Profits/Speculation Growth Income Conservation of Capital Please provide separate financial information for each owner. A. Owner/Custodian (minor s financial information not required) Number of Years Investing Annual Household Income (from all sources) $ Estimated Net Worth Estimated Liquid Net Worth (excluding residence) $ $ Bank Name B. Joint Owner Number of Years Investing Annual Household Income (from all sources) $ Estimated Net Worth Estimated Liquid Net Worth (excluding residence) $ $ Account Number 6 Investment Experience for Option Trading Complete this section ONLY if you want to be considered for option trading, otherwise skip to Section 7. A. Owner s/custodian s Investment Knowledge Excellent Good Limited Owner s/custodian s Investment Experience Past Investment Experience # of Years Past Investment Experience # of Years B. Joint Owner s Investment Knowledge Excellent Good Limited Joint Owner s Investment Experience Past Investment Experience # of Years Past Investment Experience # of Years Stocks Uncovered Equity Puts Commodities Uncovered Equity Calls Options Purchasing Short Index Puts Covered Writing Short Index Calls Stocks Uncovered Equity Puts Commodities Uncovered Equity Calls Options Purchasing Short Index Puts Covered Writing Short Index Calls Spreads Combinations Option Trading Each applicant must review the option questions and understand the risks associated with options. 1. Do you agree that Trading Profits/Speculation are part of your investment objectives? 2. Do you want to purchase options? 3. Do you want to write covered options? 4. Have you read about and studied option trading? 5. Are you aware of the substantial risks involved in option trading? 6. Do you want to maintain spread positions? If so, do you agree with the following statements? BrownCo has margin requirements for spreads and you know what those requirements are. If the long position expires before the short position, it does not qualify for spread margin treatment. There is a significant risk of adverse price movement when only one leg of a spread is closed out, whether by assignment, exercise, purchase or sale, particularly American-style index option spreads. Unless your account is approved for uncovered options, it is your responsibility when closing the long side of a spread to simultaneously close out the short side or immediately open an acceptable replacement long position. 7. Do you want to trade uncovered equity options? Do you want to trade uncovered index options? If so, do you agree with the following statements? BrownCo has margin requirements for uncovered option writing and you know what those requirements are. There are special risks associated with uncovered option writing which expose the investor to potentially significant loss, and this type of strategy may not be suitable for all customers approved for options transactions. IMPORTANT Y Y N N Spreads Combinations Special Statement for Uncovered Option Writers The potential loss of uncovered call writing is unlimited. The writer of an uncovered call is in an extremely risky position, and may incur large losses if the value of the underlying instrument increases above the exercise price. As with writing uncovered calls, the risk of writing uncovered put options is substantial. The writer of an uncovered put option bears a risk of loss if the value of the underlying instrument declines below the exercise price. Such loss could be substantial if there is a significant decline in the value of the underlying instrument. Uncovered option writing is thus suitable only for the knowledgeable investor who understands the risks, has the financial capacity and willingness to incur potentially substantial losses, and has sufficient liquid assets to meet applicable margin requirements. In this regard, if the value of the underlying instrument moves against an uncovered option writer s position, BrownCo may request significant additional margin payments. If an investor does not make such margin payments, BrownCo may liquidate stock or option positions in your account, with little or no prior notice in accordance with the investor s margin agreement. For combination writing, where the investor writes both a put and a call on the same underlying instrument, the potential risk is unlimited. If a secondary market in options were to become unavailable, investors could not engage in closing transactions, and an option writer would remain obligated until expiration or assignment. The writer of an American-style option is subject to being assigned an exercise at any time after he has written the option until the option expires. By contrast, the writer of a European-style option is subject to exercise assignment during the exercise period. By completing this section, you acknowledge that you have read and understand the booklet entitled Characteristics and Risks of Standardized Options which is available on brownco.com. To request this booklet, please call (800) In particular, your attention is directed to the chapter entitled Principal Risks of Options Positions. The statements set forth above are not intended to enumerate all of the risks entailed in option trading, particularly uncovered writing. The approval for option trading in this account is based upon the more experienced applicant as indicated in the information provided above.

4 7 Account Documents Unless you decline by checking the box(es) below, you will receive account statements, trade confirmations and the annual tax documents electronically. Be sure to provide your address in Section 2A. I DO NOT WISH TO OBTAIN THE FOLLOWING DOCUMENTS FROM THE BROWNCO WEBSITE, AND REQUEST THEY BE SENT VIA US MAIL. I UNDERSTAND THAT FEES MAY APPLY FOR DELIVERY OF PAPER DOCUMENTS. Account Statements Trade Confirmations/Open Order Cancellation Notices Tax Documents/1099s For accounts receiving account documents electronically, an notification will be sent to the Account Owner s (Custodian s) address when your statement, trade confirmation or annual tax document is available for this account. You may access your documents after you log into a secure session at brownco.com. The Account Owner(s) may sign up or change preferences at any time and request alternate or additional notifications to authorized persons on the account by visiting the Sign-up for e-delivery or Modify e-delivery Preferences under the Account Documents section of brownco.com. Access to these documents is free, however, online access and usage charges by your Internet service provider may apply. Documents will be made available via a Portable Document Format (PDF) application and may be printed and/or saved. Your consent is effective until further notice by BrownCo or withdrawal by you. If we are unable to you a notification informing you that your documents are available online, we will send you paper documents. This will continue until a valid address is provided. We reserve the right to charge a fee for the delivery of any paper documents to you or any interested party you designate. 8 Customer Agreements and Signatures Each owner (including joint owner) or custodian must read the Brokerage Account Customer Agreements and sign this section in ink. Where the words I, my, me, you or your are used in this agreement, they will apply to the undersigned and to each of the undersigned (Account Owner). I am at least the age of majority in the state I reside in. I certify under penalty of perjury that (1) I am a US Person (including a US Resident Alien) and the number shown on this application is my correct taxpayer identification number, and (2) that I am not subject to backup withholding as a result of failure to report all interest and dividends, or the Internal Revenue Service has notified me that I am no longer subject to backup withholding or I am exempt from backup withholding. Check this box if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding. By checking this box, I certify that I am not a US Person and am submitting IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, with this form to certify my foreign status and, if applicable, claim tax treaty benefits. To obtain a Form W-8BEN, please call (800) or go to the IRS website ( I acknowledge that Federal law requires financial institutions to obtain, verify and record information that identifies each person who opens an account. I authorize BrownCo to inquire from any sources as to my identity. By executing this agreement, the undersigned (known as Subscriber in the Nasdaq Subscriber Agreement) agrees: That it has read, and agrees to be bound by, the Nasdaq Subscriber Agreement, a copy of which is attached hereto; That Vendor is not an Agent of Nasdaq and is not authorized to add to or delete from the Nasdaq Subscriber Agreement and is not authorized to modify any provision of the Nasdaq Subscriber Agreement; and That no provision has been added to or deleted from the Nasdaq Subscriber Agreement and that no modifications have been made to it. Both Subscriber and the person executing on behalf of Subscriber warrant that Subscriber is legally able to undertake the obligations set forth in, and the signatory is duly authorized to bind Subscriber to, the Nasdaq Subscriber Agreement. By executing this agreement, Owner(s) (known as Subscriber in the Options Price Reporting Authority (OPRA) Agreement) agrees that it has read and agrees to be bound by the OPRA Agreement. I have also read and agree, to the extent that I receive automated real-time quotes, to be bound by the Subscriber Agreements, copies of which are set forth in the BrownCo Brokerage Account Customer Agreements; that vendor (BrownCo) is not an agent of NYSE, AMEX or OPRA and is not authorized to add to or delete from the agreements and is not authorized to modify any provision of the agreements; and that no provision has been added to or deleted from the agreements and that no modifications have been made to them. I acknowledge that I have read, understand, and agree to the terms set forth in this application and the Brokerage Account Customer Agreements (effective November 21, 2005, or a later dated version), and its enforcement shall be governed by the laws of the Commonwealth of Massachusetts. It shall cover individually and collectively all accounts which I may open or reopen with BrownCo. It shall inure to the benefit of BrownCo s successors and assigns, whether by merger, consolidation, or otherwise. BrownCo may transfer my account(s) to its successors and assigns, and the Brokerage Account Customer Agreements shall be binding upon my heirs, executors, administrators, successors, and assigns. I acknowledge that all information provided in this Brokerage Account Application is true and accurate. I have read the terms and conditions concerning this account and agree to be bound by such terms and conditions as are currently in effect and as may be amended from time to time, particularly Section 27 on page 3, relating to pre-dispute arbitration. I acknowledge receipt of the pre-dispute arbitration clause. Signature of Owner X Signature of Joint Owner/Custodian Date (MM/DD/YYYY) Date (MM/DD/YYYY) X 2005 BrownCo, LLC. Member NYSE/SIPC. BCO8007WEB R10/05

5 Margin Disclosure One Beacon Street Boston, MA (800) brownco.com Please retain for your records. BrownCo is furnishing this document to you to provide some basic facts about purchasing securities on margin and to alert you to the risks involved with trading securities in a margin account. Before trading securities in a margin account, you should carefully review the margin agreement provided by BrownCo and consult us regarding any questions or concerns you may have with your margin accounts. When you purchase securities, you have the option of paying for them in full or borrowing part of the purchase price from BrownCo. If you choose to borrow funds from us, you accept the rights and obligations of the Cash and Margin Agreements section of our Customer Agreements.* The securities purchased are used as collateral for the loan that was made 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 or other assets in any of your accounts held by BrownCo, in order to maintain the required equity in the account. It is important that you fully understand the risks involved in trading securities on margin. These risks include the following: You can lose more funds than you deposit in the margin account. A decline in the value of securities that are purchased on margin may require you to provide additional funds or margin-eligible securities to BrownCo to avoid the forced sale of those securities or other securities or assets in your account(s). BrownCo can force the sale of securities or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements or the firm s higher house requirements, BrownCo can sell the securities or other assets in any of your accounts held at the firm to cover the margin deficiency. You also will be responsible for any short fall in the account after such a sale, possibly including BrownCo s cost related to collecting the short fall. BrownCo can sell your securities or other assets 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 or other assets in their accounts to meet the call unless the firm has contacted them first.this is not the case. Most brokerage firms will attempt to notify their customers of margin calls, but they are not required to do so. However, even if a firm has contacted a customer and provided a specific date by which the customer can meet a margin call, the firm can still take necessary steps to protect its financial interests, including immediately selling the securities without notice to the customer. You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call. Because the securities are collateral for the margin loan, BrownCo has the right to decide which security to sell in order to protect its interests. BrownCo can increase its house maintenance margin requirements at any time and is not required to provide you advance written notice.these changes in firm policy often take effect immediately and may result in the issuance of a maintenance margin call. Your failure to satisfy the call may cause BrownCo to liquidate or sell securities in your account(s). 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 customers under certain conditions, a customer does not have a right to the extension. Short selling is done in a margin account and entails risks that are similar to those described above. BrownCo can buy-in securities to cover a short position without contacting you, and may use all or any portion of the assets in your account to make such a purchase. * At BrownCo, all accounts are opened as margin accounts unless they are not eligible as required by law. These certain accounts (which include IRA, custodial (UGMA) accounts, and certain trust and other fiduciary accounts) are opened as cash accounts. Margin Credit extended by BrownCo, LLC BrownCo, LLC. Member NYSE/SIPC. BrownCo Margin Disclosure