Margin Account Facts

Following is information pertaining to any margin account you maintain at Baird.

Securities purchased on margin are Baird’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, Baird can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with Baird 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
• Baird can force the sale of securities or other assets in your accounts(s)
• Baird can sell your securities or other assets without contacting you
• You are not entitled to choose which securities or other assets in your accounts(s) are liquidated or sold to meet a margin call
• Baird can increase its “House” maintenance margin requirements at any time and is not required to provide you advance notice
• You are not entitled to an extension of time on a margin call