Investments made in equity or other instruments are subjected to market risks. You are the holder of the entire risk on the investments. Your capital is at risk and you may lose some or all of your investment. Investment in a certain class of assets may be deemed safer than the other, but all investments are subjected to price fluctuations depending on their riskiness. Riskier assets may yield higher returns, but this may not always be true. Clients are required to make their assessments before investing in instruments. The nature and risk profile of different instruments may be different from others, and users are required to make their independent assessment of such risks.
Users seeking moderate returns can opt for safer securities and may choose to create a diversified portfolio. Diversification is often used to protect the portfolio against the concentration of risk in a specific basket. Such practices can protect the investor against sudden movement in a particular sector or asset class.
Your account and investments are protected by the SIPC for up to $500,000 of which up to $250,000 may be in cash. This does not protect you against market movements.