SECTION IV: INVESTMENTS

Individual Equities (Stocks)

Stocks represent a proportional share of equity ownership in a company. A share in a corporation gives the owner of the stock a stake in the company and its profits (and losses) without the risk of personal liability for the corporation's debt and obligations. Investors who purchase stock become shareholders of the company, and as shareholders, investors have certain rights, including the ability to vote on important matters concerning the company.

Investors should consider the features of each stock they are purchasing. For example, certain stocks have the potential for growth, while other stocks provide income through dividends and some stocks provide the opportunity to have both growth and income through dividends. Keep in mind that dividends are not guaranteed. Registered Representatives should remember that features that matter to one customer may not be important to another.

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