American Eastern Securities Internet On-line Account Application

Margin Disclosure Statement

American Eastern Securities, Inc. (“AES”) 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. Before trading stocks in a margin account, you should carefully review the margin agreement provided by AES. Consult AES 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 your brokerage firm. If you choose to borrow funds from your 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 member, 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 interest, 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. Because 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 member to liquidate or sell securities in your account(s).

 

·   You are not entitled to an extension to 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.

 
Before you can start trading on-line, you need to complete the following steps:
  1. Fill out the on-line application.
  2. To apply for a Cash account, print out the account application form, fill out the form completely, sign and return it to American Eastern Securities.
  3. To apply for a Margin account, print out the Bear Stearns Customer Agreement form, fill out the form completely, sign and return it to American Eastern Securities.
  4. Upon approval of your application, AES will email you your account number, password and wiring instructions.
  5. You must then wire funds to AES.
Please fill out the form completely. Click on Submit to continue.
Account Owner Information

Account Owner's Name:

Title
 First
 MI
 Last
Date of Birth
(mm/dd/yyyy)
 Social Security #
(000-00-0000)
 Citizenship


Home Address


 Mailing Address (if different from home)
City
 State
 City
 State
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 Zip
 Country
 Zip

Daytime Phone
(000-000-0000)
 Evening Phone
(000-000-0000)

Employment status:

Account Owner's Employment Information

If you are self-employed, please indicate the name of your business. If you are not employed, please indicate your most recent employer.
Account Owner's Employer
Occupation

Employment Address
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 State
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 Zip

Employer's Phone
(000-000-0000)

  
Years Employed
  
Type of Business

Financial Information
Annual Income
 Net Worth
Source of Income

Affiliation Information

ARE YOU, OR IS A MEMBER OF YOUR HOUSEHOLD CURRENTLY:
1. Affiliated or employed by a member of a stock exchange or the National Association of Securities Dealers?
Yes No
2. Licensed by the National Association of Securities Dealers or is a registered investment advisor and using the license or registration in a professional sales, trading or customer service capacity?
Yes No

3. A director, 10% shareholder or policy making officer of a publicly traded company?
Yes No

Account Information

Please indicate your preferred account type.
Cash Margin
Minimum initial deposit (cash account only) US$
Would you like to open a Vision 1 account with benefits such as free checking, Debit Card and monthly statement? Click on the link to see details.
Yes No
Would you like to have a free e-mail account at American Eastern (with the format yourname@americaneastern.com)?
Yes No
E-mail address where your application status notification should be sent:
(50 Characters Max.)
For security reasons please enter your mother's maiden name.
Mother's Maiden Name:
(20 Characters Max.)

Additional Account Privileges

Would you like information on our asset management account? Yes No
Would you like to transfer your account from another brokerage firm to American Eastern Securities, Inc.? Yes No



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