The most common type of account is a cash account. In most cases,
you must have sufficient cash or securities in your account - called
"equity" - before placing an order. In some cases, you may be allowed
up to three (3) business days after the purchase date to pay for
When approved for this type of account, you can buy securities
on credit. You make partial payment for the security and borrow
the rest of the purchase price from PrimeVest at competitive rates.
Click here for our current
margin interest rates.
You’d like to buy 100 shares of XYZ stock that sells for $80 per
share. The current market value of your purchase is $8,000. To complete
the purchase on margin, you must have a minimum of $4,000 in your
account – called the "initial margin requirement". PrimeVest
loans you the remaining $4,000, so you now have a $4,000 debit balance
in your account and account equity of $4,000.
The securities you purchase must be approved for margin, and you
must maintain the required minimum equity balance – called the "maintenance
margin requirement". Click
here to learn more about which securities are approved for
margin, and the initial and maintenance margin requirements. All
securities purchased on margin are held in street name as collateral
for the loan. Margin accounts require a separate margin account
Click here for more information
regarding trading on margin.
Funds in your brokerage account - including credits you receive
from the sale of a security, maturity of a bond, or a dividend or
interest payment - can earn interest at competitive rates immediately
by being automatically swept each day into a money market mutual
fund of your choice. Your money market funds are available to pay
for - or settle - your purchase transactions.
The money market mutual funds are provided through Federated Securities
Corporation, a subsidiary of Federated Investors of Pittsburgh,
Pennsylvania. Money market mutual funds are sold by prospectus.
Call us for more complete information, including charges and expenses, or
to request a prospectus or information on current money market yields. Read
the prospectus carefully before investing or sending money.
An options account allows you to buy and sell put and call options,
which can be useful ways to invest or manage financial risk. But
options can be highly speculative investments. Most options transactions
settle the next business day.
Call us for an options account
application to apply for options trading authority.
Note: Options may not be suitable for all investors as the
special risks inherent to options trading may expose investors to
potentially rapid and substantial losses.
You can place orders online virtually any time, day or night, by
logging onto the e*PRIMEVEST
web site. You should verify you have adequate funds or equity in
your account or buying power in your margin account before entering
an order online.
Orders are processed every day the New York Stock Exchange is open
during normal trading hours - 8:30 a.m. to 3:00 p.m., Central Time
(9:30 a.m. to 4:00 p.m. Eastern Time), Monday through Friday. Orders
entered near the market close or after market hours will be processed
the next morning when the market opens. You can check the status
of your orders on the order status screen. Click
here for important information about online trading risks,
including the risk that you cannot access your account or place
orders due to system delays or outages.
Note: Online order placement is subject to scheduled and unscheduled
system downtime and outages. Orders may be delayed during periods
of high trading volume. Orders cannot be accepted by email. Only
orders placed though the e*PRIMEVEST
Internet trading site will be processed. Not all services described
in this Internet site are available online. Orders placed by telephone
may be charged a higher commission than orders placed through the
Internet trading site.
In most cases, you must have sufficient funds in your account to
pay for a transaction before you place the order. Your Investment
Executive may in some cases allow you to place an order without
sufficient funds in your account. In those cases, you must pay for
– or "settle" - the transaction within the following time frames:
- Three Business Days: stocks, corporate bonds,
municipal bonds, warrants, rights, units, load mutual funds, unit
investment trusts, government agency bonds, zero coupon bonds,
and collateralized mortgage obligations.
- Next Business Day: options, Treasury bills,
Treasury notes, and Treasury bonds.
- Same Day: no-load mutual funds, low-load mutual
funds, jumbo certificates of deposit, and commercial paper.
The settlement date will be shown on the confirmation you receive
in the mail. If you're unable to settle a transaction on time, you
should contact your Investment Executive or e*PRIMEVEST.
Failure to receive a confirmation is not a valid reason for failure
to settle a transaction on time.
You can cancel a pending order before it’s filled. Market orders
can be filled in seconds – in most cases they cannot be canceled
You can enter several types of orders:
- Market Orders - A market order is an
order to buy or sell securities at the best available price. Market
orders usually result in immediate execution - although delays
can occur. Market orders to buy are executed at the lowest price
sellers are asking at the time. This is the "asked" or "offering
price." Market orders to sell are executed at the highest price
buyers are bidding at the time. This is the "bid" price.
- Limit Orders - A limit order means you'll
buy for no more, or sell for no less, than a price you specify.
With limit orders, you're speculating that the stock price will
move in your favor. If this doesn't happen, you may lose the opportunity
to trade at today's price.
- Stop Orders and Stop-Limit Orders -
To protect a profit or limit a potential loss, you can place a
sell stop order. A sell stop is placed below the current market
price. This means, don't sell the stock if it keeps going up,
but if it falls at or below your specified "stop" price, sell
it immediately. When a stock trades at or through the designated
level, it then becomes a market order and is sold at the next
best price. A sell stop order doesn't guarantee an execution at
or better than your specified price.
Buy stop orders are placed above the current market price, allowing
you to purchase a stock after it has exceeded a specified price.
These are used by investors who believe further growth is probable
only if a stock breaks that specified price barrier. When a stock
trades at or through the designated level, it becomes a market
order and is purchased at the next best price. A buy stop order
doesn't guarantee an execution at or better than your specified
You can also enter a stop limit order. A stop limit order becomes
a limit order when triggered by the stop price. The order would
only be executed at or better than the specified price limit.
A stop limit order can be filled completely, partially, or not
at all, depending on how many shares are available for purchase
or sale at the time of the order.
There are several types of "order qualifiers:"
- Good Until Canceled - A "good until
canceled" order remains in effect until executed or canceled.
However, we reserve the right to cancel the order if the limit
price becomes unrealistic in relation to the market price. If
this occurs, we'll send you a notice. We'll send you an acknowledgement
of "good until canceled" order the day it's placed, and it will
be reflected on your brokerage statement. If you want to change
a "good until canceled" order, you must cancel the original order.
Subsequent orders for the same security don't cancel your original
- All or None - Limit orders placed on
relatively thinly traded stocks (low volume per day), run the
risk of partial execution. Because commissions are calculated
on each day's activity, your limit order could fill over the course
of several days. If you don't want this to occur, specify "all
or none." This instructs us to fill the entire quantity or not
You wish to buy 1500 shares of XYZ at 25, but only 500 shares
become available to buy at this price. An order marked "all
or none" will not receive the 500 share execution. The order
will not be filled until all 1500 shares become available.
You will receive a written confirmation in the mail shortly after
an order is executed. If you don't receive a confirmation, it may
- Your order was not filled because you placed
a limit order and there was no stock available at the price you
- Your order was not filled because you placed
an "all-or-none" order and there wasn't enough stock available
to fill it.
- Your order was filled but there was a delay
in sending your confirmation because of excess trading volume
- YOU SHOULD NOT ATTEMPT TO CANCEL AND RESUBMIT THE ORDER.
Please notify us if you do not receive a confirmation. Click
here for important information about on-line trading risks,
including the risk of delayed confirmations.
Note: Remember that securities must be paid for or delivered
by the settlement date, regardless whether you receive a confirmation.
To help ensure that you receive a confirmation, please notify us
in writing of any change in your mailing address.
For each month that your account has activity, you’ll receive a
statement showing your account’s history, balance and transactions.
If your account doesn’t have activity, you’ll receive a statement
at least quarterly.
Financial Services, Inc. is a Member of SIPC, which protects securities customers
of its members up to $500,000 (including $100,000 for claims for cash).
Explanatory brochure available upon request or at www.sipc.org
Delays in executing your trades can occur for various reasons.
For example, we may manually review and enter your order. We may
do this to check the order against your account records, or to verify
your account buying power, or to examine for any trading restrictions.
Delays can also occur because of system delays and outages, particularly
during times of market volatility. You should note that we don't
give you direct access to markets, so when you enter an order it
doesn't necessarily mean the order will be executed immediately.
These delays can cause trade executions at prices significantly
away from the price quoted or displayed at the time you entered
your order. You should plan for the possibility of these delays.
Click here for more information
about trading in volatile markets.
Under your brokerage account agreement, you accept the risk that
execution of your order may be delayed. We don't warrant that our
service will be uninterrupted or error-free, nor do we make any
warranties concerning the timeliness, sequence, accuracy, completeness,
reliability or content of any information, service or transaction
provided through this web site. We reserve the right to refuse to
execute any transactions you order for any reason, including because
you don't have sufficient available funds or equity in your account
to settle a transaction.
Even after your order is executed, you may not receive confirmation
right away that the order has been executed. Confirmations can be
delayed for various reasons. You should never assume your order
hasn't been executed - even if the execution hasn't yet been reported
back to you or your account. Any attempt to shut down and re-boot
a computer to resend a previous trade request could result in a
duplicate order. You could incur liability for any duplicate orders.
You can't cancel an order after it has already been executed, even
if the execution hasn't yet been reported back to you.
The following information is provided by e*PRIMEVEST
assist investors in understanding some of the rewards – and risks
– on on-line investing.
This section provides information: