Accessing Your Brokerage Account

Volatile Markets and Securities

Periods of price volatility, coupled with high trading volume, in many securities may pose certain risks not present during periods of average trading activity. As a result, it is important that clients fully understand price and volume turbulence, and the potential risks of placing orders for securities during "fast" or volatile market conditions.

1. High trading volume at the market opening or intra-day may cause delays in execution. Executions, therefore, may be completed at prices significantly away from the market price quoted or displayed at the time the order is entered. Due to "fast" market conditions, "real time" quotes displayed may not be reflective of the current trading price of the security. Market makers may execute orders manually or reduce their size guarantees during periods of volatility, resulting in possible delays in order execution, execution at prices significantly away from the quoted or displayed price at the time the order was entered and delays in execution confirmations and cancellation reports.
   
   
2. A market order is required to be executed fully and promptly without regard to price. While prompt execution of a market order may be received, the execution may be at a price significantly different from the current or displayed quoted price of the security.
   
   
3. A limit order will be executed only at a specific price or better (i.e., a maximum price the client is willing to pay as a buyer, or a minimum price they are willing to accept as a seller). While clients may receive price protection by entering a limit order, there is a possibility that the order will not be executed. A "day" limit order is valid only for the remainder of the trading day on which it was entered. A "GTC" (Good 'til canceled) limit order remains valid, or open, until executed or canceled. GTC orders accepted by IronStone Securities may remain open for 90 days, beginning from the date the order was originally entered.
   
   
4. It may not be feasible to cancel a market or open limit order since it may have already been executed, even though the client has not yet received a trade report confirming the execution. Entering a cancel order and then entering a new order for the same (or different) security may result in both orders being executed. Clients are responsible for the execution of duplicate (or multiple) orders.
   
   
5. Initial public offering (IPO) securities trading (or expected to trade) in the secondary market at a much higher price than their offering price are often referred to as "hot issues." Clients placing market orders for "hot issues" risk receiving an execution substantially away from the market or offering price. This risk may be significantly reduced if a limit order is utilized. As noted above, it is possible that a limit order will not be executed. If deemed necessary by IronStone Securities, market or other types of orders for "hot issues" may not be accepted, or may be restricted under certain circumstances.
   
   
6. Clients trading online may have difficulty accessing their accounts due to high Internet traffic or because of systems capacity limitations. Therefore, clients may suffer market losses during periods of volatility in the price and volume of a particular stock when systems problems result in the inability to place, buy or sell orders.
   
   

   INVESTMENTS IN SECURITIES, ANNUITIES AND INSURANCE:
   Are Not FDIC Insured	Are Not Bank Guaranteed	May Lose Value
   Brokerage services are offered through Ironstone Securities, Inc. Member FINRA/SIPC