Initial Margin Disclosure Statement
Click here to view this statement in pdf format.
ROTH Capital Partners, LLC 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, as required by NASD Rule 2341. Before trading stocks in a margin account, you
should carefully review the margin agreement provided to you. Consult with your account
representative regarding any questions or concerns you may have with your margin accounts.
When you purchase securities, you may pay for the securities in full or you may borrow part of the
purchase price from the clearing firm (“The Firm”). If you choose to borrow funds from the firm, 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 or other assets in any of your accounts held with the firm, 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 to the
firm that has made the loan to avoid the forced sale of those securities or other securities or
assets in your account(s).
- The firm 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, the firm 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.
- The firm 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 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. The securities are collateral for the margin loan, the
firm has the right to decide which security to sell in order to protect its interests.
- The firm 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 the firm 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.
Annual Notice of Important Policies and Disclosures
Copyright ©2014 ROTH Capital Partners, LLC/Member FINRA/SIPC