Legal and Compliance
Ethical Standards of George K. Baum & Company
One of George K. Baum & Company's "Guiding Principles" is "Uncompromising Standards." That principle states, "The pre-eminent reputation and integrity of the firm are paramount in our ability to serve our clients. We will maintain the highest ethical standards, both personally and professionally." These are not just words to George K. Baum & Company and its employees. The Firm expects all of its employees to honor and act in accordance with both this guiding principle and the Firm's written policies and procedures.
George K. Baum & Company's principal securities regulator is the United States Securities and Exchange Commission ("SEC ") and its principal securities self-regulators are the Financial Industry Regulatory Authority ("FINRA") and the Municipal Securities Rule Making Board ("MSRB"). George K. Baum & Company diligently will take all reasonable and appropriate steps to conduct its business consistent with the highest standards of commercial honor and just and equitable principles of trade (FINRA Rule 2010 and MSRB Rule G-17) and in accordance with all applicable laws, rules and regulations.
The trust and protection of our customers are of paramount importance to George K. Baum & Company. Effective supervision and compliance are integral parts of achieving the Firm's goals and serving its customers well. Please direct any compliance-related questions or concerns to Dana Bjornson, our Chief Compliance Officer.
Disclosures & Other Information
ANTI-MONEY LAUNDERING CUSTOMER NOTICEAnti-Money Laundering Customer Notice
Anti-Money Laundering Customer Notice
Important Information About Procedures for Opening a New Account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you: When you open an account with George K. Baum & Company, we will ask you for your name, address, date of birth and other information that will allow us to identify you. We are required to obtain a copy of your valid driver's license or other identifying documents. To comply with the USA Patriot Act of 2001, the Firm may conduct a background check and/or utilize a third party to verify all information including information used to verify a customer's identity.
BUSINESS CONTINUITY PLAN SUMMARYBusiness Continuity Plan Summary
George K. Baum & Company is furnishing this document to you to provide information about our efforts to ensure that you are not significantly affected as a result of an emergency or significant business disruption.
Securities industry regulations require each member firm to create and maintain a business continuity plan reasonably designed to meet its obligations to its clients and other counterparties. In accordance with these requirements, George K. Baum & Company has designed a business continuity plan to address possible scenarios in efforts to minimize the impact to your account.
In keeping with the regulatory requirements, the business continuity plan for George K. Baum & Company is designed to address key areas of concern - including but not limited to the following:
- Data back-up and recovery
- All mission critical systems
- Financial and operational assessments
- Alternate means of communication between GKB and its customers
- Alternate means of communication between GKB and its employees
- Alternate physical locations of employees
- Critical business constituent, bank and counter-party impact
- Regulatory reporting
Communications with regulators
How George K. Baum & Company will ensure that customers have access to their funds and securities in the event George K. Baum & Company determines it is unable to continue its business.
Since events creating business disruptions may vary in nature and scope, George K. Baum & Company has anticipated scenarios in which the following are affected:
- George K. Baum & Company headquarters location
- A George K. Baum & Company branch location
- A city-wide area
- A regional area
Regardless of the scope of potential disruption, George K. Baum & Company intends to continue to provide service to its clients as soon as possible.
George K. Baum & Company has an alternate operations site identified in its headquarters' geographic area. In the event where the headquarters building or business district is affected, the other building can be used to help restore operations. In the unlikely event of a citywide or regional disruption, George K. Baum & Company has established a recovery site approximately 500 miles from its headquarters that can be used to restore time sensitive functions as soon as key employees are relocated to the facility. Additionally, George K. Baum & Company would intend to take advantage of any available facilities at any of our offices that may be located in other geographical regions. In the event that any such disruption occurs, we have developed alternative service arrangements, systems, locations and contingency plans to ensure that any service is quickly restored.
At a minimum, the George K. Baum & Company business continuity plan is reviewed, updated and tested on an annual basis. Additionally, our primary internal and external application providers periodically conduct testing of their own backup capabilities to ensure that, in the event of an emergency or significant business disruption, they will be able to provide us with the critical information and applications we need to continue or promptly resume our business.
If SIPC determines that we are unable to meet our obligations to our customers or if our liabilities exceed our assets in violation of Securities Exchange Act Rule 15c3-1, SIPC may seek to appoint a trustee to disburse our assets to customers. We will assist SIPC and the trustee by providing our books and records identifying customer accounts subject to SIPC regulation.
Making sure that any type of disruption does not unduly impact our clients is extremely important to us and our business continuity plan is designed to allow us to continue to provide the quality service you have come to expect from George K. Baum & Company.
CALLABLE SECURITIES POLICY PURSUANT TO FINRA RULE 4340Callable Securities Policy Pursuant to FINRA Rule 4340
When a security is subject to a partial redemption by the issuer, the issuer notifies GKB via a central industry depository of the number of units for the specific security to be redeemed. Upon receipt of the issuer’s notification, GKB determines the favorability of the redemption based on the current market price versus the call price. When the redemption of the callable security is made on terms that are favorable to the called parties, GKB does not include any firm or employee accounts in the pool of securities eligible to be called until all other customer positions in such securities have been called. When the redemption is made on terms that are unfavorable to the called parties, GKB does not exclude firm or employee accounts from the pool of the securities eligible to be called. Once the favorability of the redemption has been determined, GKB uses a random process designed to allocate called securities on a fair and impartial basis. The lottery process is based on a mathematical formula that determines the accounts that will be selected and the number of securities in the account that will be redeemed.
Important Information About the Content of this Website
The Content of this website contains general information about George K. Baum & Company, our array of products and services, the investment process, and certain specific securities. This website is provided for informational purposes only and does not constitute an offer to sell nor a solicitation of an offer to buy any security referenced in this website. The Content provided on this website is intended for your personal, non-commercial use. George K. Baum & Company does not intend to provide investment, tax or legal advice through this website and does not represent that any securities, products or services described herein are suitable for any investor. Investors are advised not to rely on any Content contained in this website in the process of making a fully informed investment decision. Content contained on this website, including but not limited to pricing, valuation, and commentary on specific securities, reflects the authors' analyses as of the respective publication date indicated. The accuracy, completeness or timeliness of such Content cannot be guaranteed and is subject to change. George K. Baum & Company is under no obligation to update the Content to reflect changes after the publication date. Furthermore, news, views, opinions, commentary, recommendations, data, pricing and all other information contained in the Content on this website is believed to be reliable, but George K. Baum & Company cannot and does not guarantee its accuracy, timeliness or completeness.
This website has been published in the United States for residents of the United States. This website is not intended for use by, or to provide any Content to, investors outside of the United States. Investors outside of the United States are subject to commercial, securities and tax laws and regulations within their applicable jurisdictions that are not addressed on this website. No security, investment advisory service, or other product or service will be offered or sold by George K. Baum & Company in any jurisdiction in which such offer or solicitation, purchase or sale, would be contrary to the securities laws and regulations, or any other local laws and regulations. U.S. Investors should be aware that not all investments discussed on the website may be available in all states.
Ownership and Restrictions on Use
George K. Baum & Company and/or its licensors own all right, title and interest in and to the Content appearing on and/or generated by this website, including all copyright, trademark and other intellectual property rights therein. You may view, download, print or distribute Content for your internal informational and non-commercial use only, so long as you do not remove or obscure any copyright or other notices. You may not otherwise copy, publish, display, distribute, commercially exploit, modify, reverse-engineer, disassemble, decompile, translate, adapt, create derivative works from, transfer or sell in any form or by any means, any part or portion of this website including any Content, any underlying code or other aspects of website.
This website enables you to communicate electronically by sending an email message to George K. Baum & Company and/or its employees and representatives. By use of this website, you agree not to use email to give George K. Baum & Company any instruction affecting your account(s), including, but not limited to, placing orders to purchase or sell a security or to transfer funds. You may not use email for the transmission of your credit card numbers or any other personal credit information, to give notice of a change of address, to give instructions to change or confirm your password, or to give George K. Baum & Company any time-sensitive instructions. If you nonetheless attempt to send any such instructions to George K. Baum & Company by email, George K. Baum & Company will not follow, honor or otherwise take any such action on the basis of any such email instructions. George K. Baum & Company will not be liable for any actions taken or any omissions to act as a result of any email message(s) sent to the Firm and/or any of its employees and representatives.
Modifications to the Website and to the General Terms and Conditions
Links to Other Websites
This website may provide links that allow you to leave the George K. Baum & Company website to access other websites. George K. Baum & Company has no control over any such other linked websites and is not responsible or liable for any content, advertising, information, links, products, services or other materials available on such other websites. George K. Baum & Company is providing these links to other websites only as a convenience to you. The inclusion of any such link does not imply any type of endorsement by George K. Baum & Company of the linked website, its operators or any of the content, advertising, information, links, products or services available on or through such linked websites. George K. Baum & Company shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with any use of or reliance on any such content, advertising, information, links, products or services available on or through any such linked website.
As a condition of your use of this website, you agree that you will not use this website for any purpose that is unlawful or prohibited by the applicable terms and conditions. You may not use this website in any manner which could damage, disable, overburden, or impair this website or interfere with any other person's use and enjoyment of this website. You may not obtain or attempt to obtain any Content from this website through any means not intentionally made available or provided for through this website.
Security and Use of Password
Certain Content available on this website is accessible only to those users to whom George K. Baum & Company has provided a password (each hereinafter referred to as a "Password User"), including accessing information about your George K. Baum & Company account(s). In order to obtain a password, please contact your George K. Baum & Company Representative. Use of any such Content may be subject to additional terms and conditions. A Password User is solely responsible for (1) maintaining the confidentiality of the password, and (2) all activities that occur under the password. A Password User must immediately notify his or her George K. Baum & Company Representative of any loss or theft of the password, or if the confidentiality of the password has otherwise been compromised in any way. George K. Baum & Company will not be responsible or liable for any loss or damage arising in any way from use of the password and/or the accessing of any Content therewith.
George K. Baum & Company uses reasonable precautions to maintain the confidentiality of your account information, or any other confidential, non-public, personal information provided by you or to you via this website, or any communication through email. Because that information can be accessed through the Internet, you hereby acknowledge and agree that there can be no assurance that such information will remain secure. George K. Baum & Company may at times disclose such information to its employees, representatives, officers, agents or affiliates, as well as any governmental entity, in the conduct of its business, to comply with applicable laws, rules, regulations, orders, subpoenas or other legal processes, in order to provide information to any governmental agency or official requesting such information, or for any other legitimate business purpose. Please see George K. Baum & Company's Disclosure Brochure, expressly incorporated herein by this reference.
Disclaimer and Limitation of Liability
GEORGE K. BAUM & COMPANY ACCEPTS NO RESPONSIBILITY FOR AND MAKES NO WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, OR STATUTORY, REGARDING THE SUITABILITY, RELIABILITY, COMPLETENESS, AVAILABILITY, TIMELINESS, OR ACCURACY OF THE CONTENT AVAILABLE ON OR THROUGH THIS WEBSITE, AND DOES NOT AND CANNOT ASSUME AND IS NOT RESPONSIBLE FOR ANY FINANCIAL RESULTS BASED ON THE USE OF SUCH CONTENT. ANY QUOTATIONS OR OTHER PRICING INFORMATION PROVIDED ON THIS WEBSITE MAY BE DELAYED OR OUTDATED AND MAY NOT REFLECT THE PRICES AT WHICH THE QUOTED SECURITIES MAY BE BOUGHT OR SOLD. YOU SHOULD NOT MAKE ANY DECISIONS TO BUY OR SELL BASED ON SUCH QUOTATIONS OR ON ANY OTHER CONTENT ACCESSED ON OR THROUGH THE WEBSITE.
GEORGE K. BAUM & COMPANY HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES, REPRESENTATIONS AND CONDITIONS OF ANY KIND REGARDING THE USE OF THIS WEBSITE AND ANY CONTENT AVAILABLE ON OR THROUGH THIS WEBSITE, EITHER EXPRESS OR IMPLIED, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT.
IN NO EVENT SHALL GEORGE K. BAUM & COMPANY BE LIABLE FOR ANY DIRECT, INDIRECT, PUNITIVE, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR ANY OTHER DAMAGES WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH (1) THE USE OR PERFORMANCE OF THIS WEBSITE, (2) THE DELAY OR INABILITY TO USE THIS WEBSITE IN WHOLE OR IN PART, (3) ANY RELIANCE BY YOU ON CONTENT PROVIDED ON OR THROUGH THIS WEBSITE, OR ON THE RELIABILITY, ACCURACY, COMPLETENESS, SEQUENCE OR TIMELINESS THEREOF, (4) ANY UNAUTHORIZED USE BY YOU OF EMAIL, OR (4) TERMINATION OR MODIFICATION BY GEORGE K. BAUM & COMPANY OF THIS WEBSITE OR ANY PRODUCTS, SERVICES OR OTHER CONTENT PROVIDED THEREON, WHETHER BASED ON CONTRACT, TORT, NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, EVEN IF GEORGE K. BAUM & COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. BECAUSE SOME STATES/JURISDICTIONS DO NOT ALLOW FOR THE EXCLUSION OR LIMITATION OF LIABILITY FOR CONSEQUENTIAL OR INCIDENTAL DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU.
IN ADDITION TO AND WITHOUT LIMITING THE FOREGOING, GEORGE K. BAUM & COMPANY SHALL NOT BE LIABLE FOR ANY HARM CAUSED BY THE TRANSMISSION, VIA USE OF THIS WEBSITE, OF A COMPUTER VIRUS, OR OTHER COMPUTER CODE OR PROGRAMMING DEVICE THAT MIGHT BE USED TO ACCESS, MODIFY, DELETE, DAMAGE, CORRUPT, DEACTIVATE, DISABLE, DISRUPT, OR OTHERWISE IMPEDE IN ANY MANNER THE OPERATION OF ANY OF YOUR SOFTWARE, HARDWARE, DATA OR PROPERTY.
IF THESE TERMS AND CONDITIONS ARE NOT ACCEPTABLE IN FULL, YOU MUST IMMEDIATELY TERMINATE YOUR USE OF THIS WEBSITE.
INVESTOR EDUCATION MATERIALSINVESTOR EDUCATION MATERIALS
Investor education and protection is one of the top goals of the regulators governing the financial services industry. "Client First" is the premier value found in the George K. Baum & Company Mission Statement. The links below provide valuable information and free resources about investing and the protection of those investments.
INVESTOR - FIXED INCOME RISK DISCLOSURESInvestor – Fixed Income Risk Disclosures
Investing in any security involves risk and exposes the investor to potential losses on their investment. Different investment products and strategies involve different degrees of risk. Fixed income investments have a number of different risks that potential investors should be aware of in order to make an informed assessment as to whether the investment meets their risk profile. The following is a list of potential risks for of investing in fixed income securities.
Call or Prepayment risk. Call risk refers to the potential for an issuer to repay a bond before its maturity date, something that an issuer may do if interest rates decline -- much as a homeowner might refinance a mortgage loan to benefit from lower interest rates. Bond calls are less likely when interest rates are stable or moving higher. Many municipal bonds are "callable," so investors who want to hold a municipal bond to maturity should research the bond's call provisions before making a purchase. Investors in mortgage-backed securities are subject to prepayment risk – as interest rates move higher, prepayments will generally decline as the underlying mortgages become less likely to prepay. This extends the average life of the mortgage pool and increases the expected duration of the bond which may cause a decline in the current market value for the security. Even small changes in rates can have significant implications from a market value perspective. Investors with shorter-term liquidity needs or who do not have the ability to hold the securities to maturity may experience unanticipated losses.
Credit risk. This is the risk that the bond issuer may experience financial problems that make it difficult or impossible to pay interest and principal in full (the failure to pay interest or principal is referred to as "default"). Credit ratings are available for many bonds. Credit ratings seek to estimate the relative credit risk of a bond as compared with other bonds, although a high rating does not reflect a prediction that the bond has no chance of defaulting.
Interest rate or duration risk. Bonds have a fixed face value, known as the "par" value. If bonds are held to maturity, the investor will receive the face value amount back, plus interest that may be set at a fixed or floating rate. The bond's market price will move up as interest rates move down and it will decline as interest rates rise, so that the market value of the bond may be more or less than the par value. U.S. interest rates have been low for some time. If interest rates move higher, investors who hold a low fixed-rate municipal bond and try to sell it before it matures could lose money because of the lower market value of the bond in that environment. Duration is a measurement of a bond's sensitivity to interest rates changes. The higher the duration of a bond (generally the maturity or expected maturity of a bond), the larger the impact on the change in value when interest rates move up or down. Higher duration bonds carry more interest rate risk than lower duration bonds.
For additional information about interest rate risk, the MSRB has highlighted the impact of market interest rate movements on bond prices and yields on their website:
Inflation risk. Inflation is a general upward movement in prices. Inflation reduces purchasing power, which is a risk for investors receiving a fixed rate of interest. It also can lead to higher interest rates and, in turn, lower market value for existing bonds.
Liquidity risk. This refers to the risk that investors won't find an active market for the taxable or municipal bond, potentially preventing them from buying or selling when they want and also preventing them from obtaining a certain price for the bond. Many investors buy taxable and municipal bonds to hold them rather than to trade them, so the market for a particular bond may not be especially liquid and quoted prices for the same bond may differ.
Tax implications. Consider consulting a tax professional to discuss the bond's tax implications, including the possibility that your bond may be subject to the federal alternative minimum tax or eligible for state income tax benefits. There is also a risk that the U.S. tax laws may change in the future, thereby increasing or decreasing the value of municipal bonds.
MARGIN DISCLOSURE STATEMENTMargin Disclosure Statement
George K. Baum & Company is furnishing this information 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. Please contact us regarding any questions or concerns you may have with your margin account(s).
When you purchase securities, you may pay for the securities in full or you may borrow part of the purchase price from the Firm. If you choose to borrow funds from the 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 Firm, 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 account 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 a 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 interests, 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 of 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.
George K. Baum & Company is dedicated to maintaining customer account and information security. The Firm uses reasonable precautions to maintain the confidentiality of customer account information, or any other non-public, personal information provided by a customer or to a customer via this website, or any communication through email. However, because that information can be accessed through the Internet, there can be no assurance that such information will remain secure. Accordingly, this website does not collect non-public, personal identifying information about individuals except when specifically and knowingly provided by such individuals.
Notice to Customers
George K. Baum & Company respects customer concerns about the privacy of non-public, personal information and gives this notice to customers when they obtain a financial product or service from the Firm for personal, family or household purposes. The provisions of this notice apply both to current and former customers, and include how the Firm collects, uses and protects information about its customers, as well as customer rights to limit the Firm's disclosure of customers' non-public, personal information to others. Keeping customers' non-public, personal information secure is the Firm's highest priority. The Firm restricts access to customers' non-public, personal information to those employees who need such information in order to provide customers with certain products and services. The Firm maintains physical, electronic and procedural safeguards to protect customers' non-public, personal information. The Firm collects personal information about its customers from the following sources: information received on applications (and other documents), such as a Social Security number, income, date of birth, and investment objectives; information about customer transactions with the Firm, its affiliates and nonaffiliated third parties; and, information the Firm receives about customers from other sources. The Firm may disclose the information collected for everyday business purposes, such as to process transactions, open and maintain customer accounts, respond to court orders and legal investigations, or in response to regulatory inquiries. The Firm's affiliates are the family of operating companies controlled by George K. Baum Holdings, Inc. These include George K. Baum & Company, and George K. Baum Capital Advisors, Inc. In order to serve customers better, the Firm may share some or all of the non-public, personal information about its customers with its affiliates. The law permits the Firm to share with its affiliates any information about transactions and experiences with its customers. Nonaffiliated third parties are those not part of the family of companies controlled by George K. Baum Holdings, Inc. THE FIRM DOES NOT SHARE, SELL OR MARKET NON-PUBLIC PERSONAL INFORMATION ABOUT ITS CUSTOMERS TO NONAFFILIATED THIRD PARTIES. The Firm may share the non-public personal information obtained about its customers with third parties who perform services or provide products on behalf of the Firm or its customers. The Firm may also share with or without customer consent, such non-public, personal information about its customers with nonaffiliated third parties as permitted or required by law, including disclosures necessary to process and service customer accounts, to protect against fraud, to protect the security or confidentiality of its records, or to respond to legal processes. Certain information may also be disclosed to consumer reporting agencies with respect to the activity in margin accounts. The Firm does not otherwise disclose any non-public, personal information about its customers to any other nonaffiliated third parties, except as permitted or required by law. Please see George K. Baum & Company's Disclosure Brochure.
SEC RULE 606 REPORTINGSEC Required Reporting
SEC-Required Reporting on Routing of Customer Orders
George K. Baum & Company has prepared this report pursuant to a U.S. Securities and Exchange Commission rule requiring all brokerage firms to make publicly available quarterly reports on their order routing practices. The report provides information on the routing of "non-directed orders" -- any order that the customer has not specifically instructed to be routed to a particular venue for execution. For these non-directed orders, George K. Baum & Company has selected the execution venue on behalf of its customers. The report is divided into four sections: one for securities listed on the New York Stock Exchange, one for securities listed on the Nasdaq Stock Market, one for securities listed on the American Stock Exchange or regional exchanges, and one for exchange-listed options. For each section, this report identifies the venues most often selected by George K. Baum & Company, sets forth the percentage of various types of orders routed to the venues, and discusses the material aspects of George K. Baum & Company's relationship with the respective venues.
SIPC PROTECTIONSIPC Protection
Member of SIPC. Securities in your account protected up to $500,000. For details, please see www.sipc.org. Positions reflected on your statement, but not held in your account at George K. Baum & Company are not covered by our SIPC protection.
STATEMENT OF FINANCIAL CONDITIONStatement of Financial Condition
In accordance with the requirements of the Securities Exchange Act of 1934, George K. Baum & Company's Statement of Financial Condition can be obtained below, or a hard copy can be requested by calling 1-800-821-7195, ext. 5260.
These reports require the use of the Adobe Acrobat reader. Click HERE to download the reader.
TECHNICAL INFORMATIONTechnical Information
Certain areas of this website require the use of "Cookies." Please be certain that your browser supports the use of "Cookies" and that this feature is enabled.
In order to assure the secure transfer of information over the Internet, this website uses the "Secure Socket Layer" protocol. In addition, a VeriSign digital certificate has been installed to assure the proper identification of the gkbaum.com domain.
TRADE CONFIRMATION DISCLOSURESTrade Confirmation Disclosures
It is agreed between George K. Baum & Company and the customer:
1. That all transactions are subject to the rules and regulations of the Federal Reserve Board and the rules and customs of the Exchange or Market (and its Clearing House, if any) where executed.
2. That all securities from time to time carried in the customer's open account or deposited to secure the same, may be loaned or pledged by the firm either separately or with other securities of other customers for a sum, not in excess of the aggregate indebtedness of such customers in respect of such securities.
3. That delivery of securities sold and payment for securities bought must be received by us at our office not later than the "Settlement Date", otherwise interest charges and premiums are chargeable. Pending full payment on purchases, we may hypothecate and commingle with other securities so purchased until as soon as practicable after receipt of payment.
4. That this agreement shall inure to the benefit of any successors of this firm which result merely by withdrawals from or additions to existing firm personnel, where the customer does not indicate his nonacquiescence in such agreement.
5. If we acted as your agent, name of person with whom the transaction was made, and time, will be furnished upon written request. If we acted as agent for both buyer and seller, a like commission was charged to each unless otherwise indicated. If we acted as principal, the time of execution of this transaction will be furnished upon written request.
6. That the time of execution will be furnished upon written request.
1. George K. Baum & Company is furnishing this information to you to provide some basic facts about purchasing securities on margin. Securities purchased on margin are George K. Baum & Company'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, George K. Baum & Company can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts held with George K. Baum & Company 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.
- George K. Baum & Company can force the sale of securities or other assets in your account(s).
- George K. Baum & Company can sell your securities or assets without contacting you first.
- You are not entitled to choose which securities or other assets in your account(s) are liquidated or sold to meet a margin call.
- George K. Baum & Company can increase its "house" maintenance margin requirements at any time and is not required to provide you advance written or other notice.
- You are not entitled to an extension of time on a margin call.
2. Call or other features may exist which could affect yield. Information concerning the factors that affect yield (including estimated yield, weighted average life and the prepayment assumptions underlying yield) will be provided upon written request. The actual yield of certain fixed income securities (including but not limited to collateralized mortgage obligations) may vary according to the rate at which the underlying receivables or other financial assets are prepaid.
3. No periodic payments - callable below maturity value without notice by mail to holder unless registered.
4. Mutual Fund Trades may be eligible for breakpoint discounts based on the size of your purchase, current holdings or future purchases. Please provide all relevant information in these regards. The sales charge you paid may differ slightly from the Prospectus disclosed rate due to rounding calculations. Please refer to the Prospectus, Statement for Additional Information or contact your financial advisor for further information.
5. Important Notice to Purchaser: (1) the official statement ("OS") for this municipal security (if required) is available, free of charge, through the "EMMA" portal on the MSRB's website, http://emma.msrb.org/; EMMA can be searched in these regards, for example, by using the CUSIP of this municipal security that is included on the front of this trade confirmation; and (2) a written/printed copy of such OS (if required) will be provided to the purchaser upon request (any request for a written/printed copy of an OS should be directed to the firm's OS request line: toll-free telephone number 800-722-1670).
6. Non-Traditional Exchange Traded Products (ETPs), which include Exchange Traded Funds and Notes, are speculative trading vehicles that are complex and volatile due to the use of leverage and other complicated investment strategies. These products typically do not effectively track the underlying index over an extended period of time due to market volatility and daily or monthly reset periods. As a result, it is important that you monitor these products daily within your account.
7. IRS regulations require that cost basis on certain securities acquired and sold on or after January 1, 2011, be reported on your annual form 1099. The default method for tracking cost basis will be FIFO (first in, first out) unless you specify otherwise in writing before the settlement date of your trade. For other methods available to you and for further information, please read the IRS guidance at http://edocket.access.gpo.gov/2010/PDF/2010-25504.PDF
Please retain this confirmation for tax purposes.
Notify us immediately if this confirmation is not correct.
THANK YOU FOR ALLOWING GEORGE K. BAUM & COMPANY TO SERVE YOU.