Risk Disclosure Statement

Investing

• High Internet traffic may affect investors' ability to access their account or transmit their orders
• Market volatility may affect execution time and price of inputted orders
• Investors should be skeptical of stock advice and tips provided in chat rooms or bulletin boards.

Investors should do their own research before acting on these tips.

For some investors, there is a temptation to "overtrade" by trading too frequently or impulsively without considering their investment goals or risk tolerance. Overtrading can effect investment performance, raise trading costs, and complicate your tax situation. In a fast-market stock, when the sudden demand to buy or sell shares outpaces the supply of shares offered, we sometimes see dramatic price movement. It's not unusual to see 10, 20, even as much as a 30-point movement over a short period of time. If an investor places a simple "market order," that is to say, an order at "the market price," he or she could end up buying or selling shares at a price that is significantly different from the market price displayed only moments earlier. For example, in a fast market, you could place a trade at a projected price of $10 and end up paying $40. It can, and does, happen.

If you decide to place an order in a fast market, entering a limit order (instead of a market order) allows you to establish a buy price at the maximum you are willing to pay, or a sell price at the minimum you are willing to receive.

You understand and acknowledge that neither Max International Broker/Dealer Corp. nor their affiliates or employees advise you concerning the nature, potential value or suitability of any particular security, portfolio of securities, transaction or investment strategy.

You further understand that the materials provided within the Max International Broker/Dealer Corp. website are for informational purposes only and any references to specific securities contained therein do not constitute recommendations to buy or sell. Any investment you make will be based solely on your own evaluation of your financial circumstances and investment objectives.

Buying on Margin

A margin account cannot be opened unless the customer signs a margin agreement. Under the agreement, the customer pledges the securities that are purchased in the account to the brokerage firm. In return for the pledge of securities, the brokerage firm loans the customer a portion of the purchase price. If you plan to borrow money to buy stock, you also need to know the terms of the loan your broker gave you and the inherent risks involved. In volatile markets, an investor who puts up an initial margin payment for the purchase of stock may be required to deposit additional funds, (thus the term "margin call"), in his/her account if the price of the stock falls. If you do not respond in a timely manner, stocks in your account could be sold to cover the call and you would be held responsible for any losses. Your broker has the legal right to sell your securities, without consulting you first, if your account falls below the required minimum maintenance level.

Buying Options

An options account cannot be opened unless the customer signs a margin agreement and an options agreement. Although, option premiums must be paid for in cash, options can only be purchased in a margin account. Options are used in hedging strategies. A risk disclosure is provided prior to the opening of an options account to explain fully the concept of buying and selling options and the risks they may impose.

Day Trading

Day trading refers to a trading strategy where an individual buys and sells the same security in a short period of time (often the same day) in an attempt to profit from small movements in the price of the security. Max International Broker/Dealer Corp. provides Risk Disclosure statements that outline the inherent risks and factors associated with day trading.

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