Help Center

Account Basics

Establishing and Accessing Accounts

Types of investment accounts available

Individual: Individual accounts are designed for single account holders only. The account holder must be 18 years of age or older.

Joint: Joint accounts are designed for two (or more) account holders, such as a husband and a wife, who have equal ownership rights in the account. Two types of joint accounts are available—tenants with rights of survivorship (JTWROS) and tenants in common.

• Joint tenants with rights of survivorship (JTWROS): Upon death of an owner, all assets automatically transfer to the surviving account owner.
• Joint tenants in common: Upon death of one owner, his or her portion of the assets does not pass to the co-owner. Instead, the deceased’s assets are distributed accordingly, while the surviving party's assets remain undisturbed and then transfer into an individual account.

Corporate/Non-Corporate: This account is established in the name of and for the benefit of a corporate or non-corporate entity and managed by authorized officers.

Trust: This account is established in the name of a trust and managed by trustees.

Custodial: A custodial account can be established for a minor, to be managed by a custodian, under applicable state UGMA/UTMA regulations. The gifts to minors are considered irrevocable, which are then managed by a custodian to act as fiduciary. Once the minor reaches the age of majority, the former minor takes control of the account.

Types of retirement accounts available

Traditional IRA: With this type of account contributions accumulate on a tax-deferred basis. Qualifying contributions may be tax-deductible, and disbursements are subject to income taxes. Withdrawals prior to age 59½ may be subject to income tax penalties.

Roth IRA: This account is similar to the traditional IRA, except that annual contributions are not tax deductible and distributions are tax-free under certain circumstances.

SEP IRA: This account provides retirement solutions for employers and their employees.

Accessing your account

To access Online, login at usbank.com

• View account balances, holdings, account activity, asset allocation, and unrealized and realized gains/losses
• Check trade order status
• Trade stocks, mutual funds and options (self-directed accounts only)
• Obtain stock quotes, market news and research
• Access educational material and financial calculators
• Utilize screeners, stock and mutual fund reports, interactive charts and more

Download the U.S. Bancorp Investments Mobile app for easy, convenient access via your mobile devices

• View your account balances, holdings and account activity
• Check the status of open orders
• Trade stocks, mutual funds and options (self-directed accounts only)
• Get stock quotes, company news and charts
• Keep up to date on market news and market movers
• Seamlessly access from the U.S. Bank Mobile app (no need to login twice; must have both apps).

You may also receive assistance by calling Wealth Management Advisory and Service Center.

Establishing a Self-Directed account

If you are an active hands-on investor, a Self-Directed account may be right for you. With a Self-Directed account you can manage your investments, conduct research, place trades and much more.

You can apply online to:

• Open a U.S. Bancorp Investments Self-Directed Brokerage Account
• Open a U.S. Bancorp Investments Self-Directed IRA Account

If you have questions or need help, call Wealth Management Advisory and Service Center for assistance.

Funding an Investment Account

How to fund your investment account

There are several options to fund your account.

Online and Mobile Funds Transfer: You can transfer funds from your U.S. Bank checking and savings account to your U.S. Bancorp Investments account (for non-IRA accounts), between U.S. Bancorp Investments accounts (non-IRA to non-IRA; IRA to IRA) and from eligible accounts at other financial institutions (online only). You can do an internal transfer from your eligible U.S. Bank checking and savings account or another U.S. Bancorp Investments account using Transfers from the Transfers tab. Mobile internal transfers can be done using the U.S. Bank Mobile app. To transfer funds from another financial institution, select External Transfers from the Transfers tab. See the Money Movement section for additional information on fund transfers. If you have questions or need help, call Wealth Management Advisory and Service Center for assistance.

Mail a Check: If you wish to fund your investment account by sending a check, make it payable to U.S. Bancorp Investments, include your account number on the “memo” line, and mail it to the address below:

U.S. Bancorp Investments, Inc.
Attn: Cash Control
EP-MN-WN20
60 Livingston Avenue
St. Paul, MN 55107

Transfer Assets from Another Financial Institution: When transferring assets between financial institutions, in general, the receiving firm will initiate the request. This transfer request may be initiated online (self-directed and Automated Investor accounts only) via paper form or through your Wealth Management Advisor. Instructions are provided to complete the required paperwork and submit to U.S. Bancorp Investments, Inc.

• Transfer assets electronically

Note: The nature of the account, title, SSN/TIN, names must match in order to perform the transfer. Also, you may want to inquire with your holding firm about potential fees, since firms will generally assess a fee for an outgoing transfer.

Deposit Securities: U.S. Bancorp Investments will only accept physical securities on an exception basis in self-directed accounts or if you are working with a Wealth Management Advisor. U.S. Bancorp Investments also reviews all low price securities deposits and may reject a transfer or deposit of those securities. Please contact the Wealth Management Advisory and Service Center if you have questions.

How to pay for trades

You can pay for trades using one of the options above, or utilize your U.S. Bancorp Investments money market or cash sweep fund. Your account can also be coded to perform a specified action, such as to send settled proceeds to your linked bank account in the event of a sale. Your account coding will determine how the purchase will be funded. To pay for transactions from your checking or savings account, use your direct bank link to automatically transfer funds free of charge. You must have cash available in the account to place a purchase trade online (self-directed accounts). For more information, contact Wealth Management Advisory and Service Center.

How to automate mutual fund transactions

You can choose to create a periodic investment plan, which can automatically schedule the purchase of a mutual fund to occur in your account, with a fixed date, dollar amount and frequency. You can also create a systematic withdrawal plan, to perform the similar action if you are in need of automated payments to be sent to you from your investment account. For more information on setting up, or canceling a systematic plan, contact Wealth Management Advisory and Service Center.

Account Protection

The securities held in your U.S. Bancorp Investments trading account and cash on deposit for the purpose of purchasing securities, or as a result of the sale of securities, are protected by the Securities Investor Protection Corporation (SIPC). SIPC protects each customer up to a maximum of $500,000, including up to $100,000 on claims for cash balances awaiting re-investment. SIPC does not protect against losses from the rise and fall in market value of your investment. It does, however, provide important protections against certain losses if a SIPC member fails financially and is unable to meet obligations to its securities customers. For details, please see www.sipc.org.

My Settings

My Profile and My Alerts

For information, select Help Center from the Customer Service tab or Need Help in the upper right corner on the My Accounts Dashboard.

My Messages

My Messages brings you to the message center.

Preferences

Trading & Quotes

For Self-directed accounts, you can set a default stock trade quantity and option contract quantity or leave blank.

Option Chains

You can set your default selections for option chains.

Account Forms

For Self-directed and Automated Investor accounts, access this page for various account forms.

Finding Your Way

Account Details

Summary

The summary page offers a dashboard view of the selected account with several widgets plus Market Information and Useful Links.

Balances

The balances page will give you a broad overview of balances for the selected account, as well as income summary, and if applicable, margin information and IRA contributions/distributions.

Holdings

The holdings page details the positions in your account(s). For your convenience, the action icon at the far right allows you quick links to areas such as holdings zoom, news and charts.

Asset Allocation

The asset allocation page provides a broad view of the account(s) and portfolio based on the category of its positions.

Account Activity

The account activity page details the previous 45 days of account activity. The advanced search feature allows you to set your own searching parameters for up to 7 years of prior account activity. Depending upon the amount of activity in your account, downloading activity may take a significant amount of time.

Unrealized Gain/Loss

Unrealized gain/loss information is based on the cost information, or total cost basis, that U.S. Bancorp Investments holds on file. This may differ from your records, or be incomplete under certain circumstances; such as if the total cost information is unknown to U.S. Bancorp Investments. Unrealized information is based on an open position. For example, if you buy 100 shares of ABC at $10.00, you can then monitor the unrealized gain/losses as ABC performs in the market.

Realized Gain/Loss

Realized gain/loss information is based on the cost information, or total cost basis, that U.S. Bancorp Investments holds on file. This may differ from your records, or be incomplete under certain circumstances; such as if the total cost information is unknown to U.S. Bancorp Investments. Realized information is based on a position once it has been sold (i.e. closed). The gain or loss is locked in and then realized. For example, if you sell the 100 shares of ABC at $12.00, the gain of $2.00 per share becomes 'realized.'

Portfolio At A Glance

The portfolio at a glance page displays a compilation of information about an account or group of accounts. Information includes portfolio day movers and the portfolio value over time.

Household Overview

The household overview page provides a broad view of the accounts linked to your user ID.

Data Download

You can download data into Quicken by selecting account and date range. A file will be generated. You can then save the file to your computer and use it to import into Quicken.

My Documents

View and Access

Under the My Documents tab, select the type of document you would like to view and then select an account number. Available documents include statements, letters & notices, tax documents, and trade documents. For statements, you'll see your three most recent documents. Select View More to see additional documents or select the Search tab and search by year or by date range. For tax and trade documents, enter the search criteria and then click Show Documents.

To print or save a document, click on the print icon at the top of browser window. Note: You must have the most recent version of Adobe Reader to view e-documents. Click the link on the page to download a free copy.

Go Paperless

You automatically receive both paper documents and online documents. If you choose paperless, you will no longer receive paper documents.

From the Profile and settings menu, click on My profile and then select Edit paperless preferences. You can go paperless for all accounts and all document types, or you can select specific document types and specific accounts. Note: When you enroll for online Statements, you will automatically receive online Letters & Notices.

Alerts

An email will be sent to the address you specify and a message will be sent to your online Message Center each time you have a new document available for viewing.

Delayed Quotes and Real-time Quotes

Delayed quotes are delayed approximately 15 minutes and provided at no cost. Access to real-time quote is limited and U.S. Bancorp Investments has the right to regulate the use.

Quick quotes

Use the symbol feature dock on the bottom for a quick quote, to look up a symbol and to view indices information. You can also use the Quote search box at the top right to display a quote. Clicking Details gives the full quote view and includes additional information on the price history and basic financial data. Use Symbol Lookup to search by company name if you do not know the symbol.

Trading

General Trading Information

Types of accounts

Cash: All securities purchased and held in this account must be paid in full by the settlement date.

Margin: A margin account is generally comprised of the use of the account securities (equity) as collateral, while using U.S. Bancorp Investments as the lending broker, to lend money to the account owner to engage in leveraged transactions, such as purchasing additional securities, or simply withdrawing free cash. Securities held in a margin account are subject to be borrowed and the account must maintain house and federal equity minimum maintenance requirements. Should the equity in the account drop below the requirements, the account owner must bring in additional funds or securities to raise the percentage of equity to meet the requirements. An account must be approved for margin through an application process. For more information, or to request an application, please contact Wealth Management Advisory and Service Center or your Wealth Management Advisor.

Trading Profile

(Information will display when applicable)

Margin Buying Power (fully marginable securities): Total amount of funds available for the purchase of equities using margin, if approved for margin trading. To apply, contact Wealth Management Advisory and Service Center.

Non-Margin Buying Power (options and non-marginable securities): Total amount of funds available for the purchase of options or non-margin eligible securities, if approved for margin trading. To apply, contact Wealth Management Advisory and Service Center.

Option Trading Level: Displays option trading level when approved for option trading. To apply, contact Wealth Management Advisory and Service Center.

Margin equity: The account's equity divided by the account value.

Margin enabled: Displays when margin approved for the account.

Day Trading Buying Power: Funds available in a margin account to place trades on a given trading day and only applies when you have been flagged as a day trader.

Pattern Day Trader Status: You are considered as pattern day trader if you place four or more day trades in a margin account within five successive trading days.

Day Trading: Buying and selling the same security during the same business day in a margin account.

Note: U.S. Bancorp Investments does not promote Day Trading. However, we do monitor Day Trading activity. A Pattern Day Trader designation requires a minimum Margin equity plus cash in the amount of $25,000 at all times or the account will be issued a Day Trade Minimum Equity Call. Options and cash investments do not count toward this requirement. A Non-Pattern Day Trade account requires a minimum of $2,000 in margin equity. All trades in margin accounts are subject to Day Trade Buying Power Limitations.

Online Trading for Self-directed accounts (information below pertains to self-directed accounts only)

For information on how to update your account as self-directed, please consult your financial advisor or Wealth Management Advisory and Service Center. If you do not know who your financial advisor is, it can be located on your U.S. Bancorp Investments monthly statement.

Placing orders in an investment account

You may use the online platform to trade in stocks, ETFs, mutual funds, and options. These trade orders may also be placed through Wealth Management Advisory and Service Center. To invest in a fixed income security, please call Wealth Management Advisory and Service Center. No written orders will be accepted, as sending securities or cash does not initiate a transaction.

Note: Orders for fixed income securities need to be placed during market hours.

Self-directed brokerage account fees

Stock Trading

You can purchase any U.S. and foreign security traded on any U.S. exchange or over the counter. Orders placed after market hours are routed to market the next business day. Exceptions may apply. U.S. Bancorp Investments does not participate in after-hours stock trading.

Penny Stock

A penny stock is a common stock that’s typically valued at less than a dollar per share and is therefore highly speculative (volatile). Purchases of penny stocks are limited to the current account balance plus or minus any intra-day trade balance plus any money market balance less any open buy orders. For IRA accounts, the cash must be available in the account to place the order. Since penny stocks are highly speculative, it’s a firm policy that all penny stock orders are limit orders only.

Note: All penny stocks with a 52-week high less than or equal to $0.26 will be blocked from purchases starting 05/28/2021.

Options Trading

Options that can be bought or sold online

You may within certain circumstances and accounts, engage in covered calls (Level 1) and long option buying in both equity and index options (Level 2). Because of their complex nature and due to the special risks involved, options are not suitable for everyone, or all types of accounts. An account must be approved for options by U.S. Bancorp Investments prior to trading options. To request an options trading application, contact Wealth Management Advisory and Service Center.

Options lookup

To place standardized options orders, you need to know the option information including the underlying symbol, the expiration date, strike price and whether the option is a call or put. To obtain detailed information for the options available for a security, you may use the Option Chains feature found on the Stock Research page under the Markets & Research tab or use the symbol lookup box on the options trade entry screen.

Mutual Fund Trading

Mutual funds that can be bought or sold online

U.S. Bancorp Investments offers more than 10,000 mutual funds from several fund families. For information about a particular mutual fund, or before purchasing a mutual fund, carefully review the fund’s prospectus, which is available on the fund company website. If you have any questions on availability of purchase for a particular mutual fund, contact Wealth Management Advisory and Service Center.

Many mutual funds offer volume discounts, or breakpoints to which you may be entitled. Breakpoints can help reduce the overall cost of your investment. If you already own shares in a mutual fund, you may be entitled to a reduced sales charge through rights of accumulation. Since these discounts can vary from mutual fund to mutual fund, it is important to review the fund’s summary prospectus. Contact Wealth Management Advisory and Service Center for more information.

Dividend and capital gains disbursement

Certain mutual funds may disburse dividends or capital gains to shareholders. If applicable, you may elect to have these dividends or capital gains reinvested or paid in cash. You can make your election on the mutual fund order entry page when placing a purchase or change your election by calling Wealth Management Advisory and Service Center.

Important information when trading for mutual funds

The ‘Yes’ checkbox on the mutual fund order entry screen indicates that you have read the prospectus for the fund, are aware of any and all fees and commissions, and have read and understand the Mutual Fund Disclosure. This checkbox must be checked for a mutual fund order to be accepted.

No-load mutual funds

More than 3,000 select mutual funds are available at no load and without a transaction fee. Use the Mutual Fund screener to search for these mutual funds.

Types of orders and definitions

Placing an order begins with completion of the Trade Order Entry screen. Below are general definitions of some common terms.

Note: This is not an all-inclusive list and not all order types are available for every type of security. These definitions are basic in nature and intended to serve as a quick reference and do not fully explain the risks and mechanics of the term. Do not place orders based solely on these definitions. If you are in need of additional assistance or have any questions about how to place an order, contact Wealth Management Advisory and Service Center.

ACTION

Buy: Indicates that you want to buy the security and are willing to pay for it.

Sell: Indicates that you own the security and wish to sell it.

ORDER TYPE

Market: A market order is filled at the best available price at the time the order is executed.

Limit: An order to execute a transaction at a specified price, or better. When you place a limit order to buy, you may purchase the security at a specified price or lower. When you place a limit order to sell, you may sell a security at a specified price or higher.

Stop: A stop order ensures that a security will be bought or sold once it reaches or trades through a set market price, called the “stop price.” Stop orders automatically become market orders once the set price has been reached. Stop prices are not guaranteed. A stop order to buy must be placed at a price higher than the current market price; a stop order to sell must be placed at a price lower than the current market price.

Stop limit: This is a combination order. Initially the order holds the same parameters as a stop order. Once the stop price is reached the order becomes a limit order. Note: On a buy stop limit order the limit price must be equal to or greater than the stop price. On a sell stop limit order the limit price must be set equal to or lower than the stop price.

DURATION

Day: An order valid only for the day. At the close of the market on that day, an unfilled order, or any portion remaining of a partially filled order expires.

Good Til Cancel (GTC): An order that is valid beginning when it is placed and lasting until the order is either 1) filled, 2) canceled by the account holder, or 3) expires not completely filled after 90 days. As the account holder, you are solely responsible for canceling open GTC orders. Any expired order must be renewed by the account owner, by entering the new order. You will be billed for any execution within the duration of the order and are responsible for any open order not canceled. In accordance with standard industry practice, a GTC order partially filling on multiple days, will be billed as separate orders for each day of execution, for commission purposes. To manage this risk, you may consider designating the order as “all-or-none”.

INSTRUCTIONS

All or none (AON): This is an optional qualifier that, if selected, designates that an order must be filled in its entirety, or not at all.

Do not Reduce (DNR): On ex-dividend date for a stock, open limit buy orders, open sell stop orders, or open sell stop limit orders are automatically adjusted by reducing the price of the open order by the dividend amount. When you designate an order with the DNR qualifier, this price adjustment will not occur. This is an optional qualifier.

OTHER

Order preview: The Order Preview screen presents the order information that you entered. This screen also provides a quote and estimated principal amount of the order based on the quote, as well as an estimated commission or transaction fee. Once you have reviewed the information for accuracy, use the buttons at the bottom of the page to submit, edit or cancel the order.

Order confirmation: The Order Confirmation page provides an order reference number which indicates that the system has received your order. The submitted order may then be reviewed by U.S. Bancorp Investments for approval prior to being submitted for execution. If it’s reviewed and rejected, you’ll see the status change from Pending to Rejected on the Order Status Page; therefore it is important to check the Order Status Page. You may want to retain this page for your records.

Confirmation number: A confirmation number, along with a trade confirmation document, will be sent to you if your order has been executed. Carefully review the trade confirmation on any filled order for accuracy. If you do not receive a trade confirmation document on an executed order, please contact Wealth Management Advisory and Service Center. You can check your order status at any time by viewing the Order Status screen.

Settlement periods: For online trades, the standard settlement period is one day for stocks, options and mutual funds, however, depending on the specific security this may vary. If you have any questions, please contact Wealth Management Advisory and Service Center.

Order Handling and Review

Certain orders may be subject to manual review and entry as part of U.S. Bancorp Investments normal order handling process. These reviews may cause delays in the execution of orders and may cause orders to be executed at prices that are different from the price quotes obtained when the order was entered. U.S. Bancorp Investments reserves the right at its sole discretion to decline to accept any order or change its requirements for certain securities or classes of securities without advance notice. U.S. Bancorp Investments, at its sole discretion and without prior notice to you, may prohibit or restrict your ability to trade. U.S. Bancorp Investments cannot guarantee requests to cancel or modify an order. U.S. Bancorp Investments may receive late and/or erroneous trade reports from the marketplace where your order is executed, which may result in an adjustment to your order or the information on a trade execution reported to you.

Order Status

Order status page and definitions.

The Order Status page displays open trade orders. It allows you to view details on open, pending, executed, or expired orders. You can also take action on orders using the link such as edit or cancel an order.

Action: Indicates if the order is to buy or sell.

Symbol / CUSIP: Ticker symbol or CSUIP of security being traded.

Quantity: Number of shares in the order or the dollar amount of a mutual fund order (when placed in dollars).

Order Type: Displays order type (market, limit, etc.) with price for non-market orders.

Duration: Day or GTC (Good Til Cancel)

Order Status

Pending: Indicates that the order is waiting for approval by U.S. Bancorp Investments.

Open: Indicates that the order has been accepted and submitted for execution, but has not yet been executed.

Executed: Indicates that the order has been executed.

Canceled: Indicates that the order has been canceled by you or by U.S. Bancorp Investments.

Expired: Indicates that the order has expired.

Rejected: Indicates that the order has been rejected for entry by U.S. Bancorp Investments. For further information on a rejected trade, contact Wealth Management Advisory and Service Center.

Editing/Canceling an order

Editing/Canceling an order does not guarantee that your original order has not been executed partially or in full. During market hours only limit, stop and stop limit orders can be edited. Market orders may not be edited or canceled after submission during market hours. Market orders entered while the market is closed may be edited or canceled only if they can be processed before the market opens.

To edit/cancel an open order: On the Order Status screen, use the Actions arrow menu for the order you wish to change and select Edit or Cancel. The Order Entry screen will be presented with the original order information pre-populated. Depending upon the specific security, you can generally change the quantity, price, and order type for an order. Other information cannot be changed. If you wish to make other changes, such as the symbol, security type or action, you must cancel the order and place a new order.

Free Ride

A free riding violation occurs when you buy securities and then pay for the purchases (total of all buys) by using the proceeds from a sale of one or more of the same securities.

Trading in Cash Account

Example 1: NOT a Free Ride Violation

You have $0 in funds available

• On Monday morning, you sell $10,000 of fully settled ABC stock and buy $10,000 of ABC stock.
• On Monday afternoon, you sell $15,000 of fully settled XYZ stock and buy $15,000 of ABC stock again.
• On Tuesday (settlement day), no funds are deposited.

A free ride did NOT occur because you used the proceeds from the $15,000 sale of XYZ and $10,000 of ABC which was already paid for in the account. As long as ABC and XYC were fully settled before they were sold, no free ride occurs.

Example 2: Free Ride Violation

You have $10,000 in funds available and no positions.

• On Monday morning, you buy $5,000 of ABC stock and $5,000 of XYZ stock.
• On Monday afternoon, ABC appreciates, and you sell $10,000 of ABC stock. ABC drops and you buy back $10,000 of ABC stock again.
• On Tuesday (settlement day), no funds are deposited.

A violation does occur. You were able to use $10,000 for stock purchases; however, since you bought ABC stock that day and sold before settlement, those funds were now unsettled. Had you not made any other purchase, no violation occurs. However, since you bought more shares of stock the same day the settled funds had been used up you would need to bring in $10,000 to avoid a free ride. If you were to sell a separate stock that was fully settled, those proceeds could be used the same day.

Establishing a margin account can be beneficial for active traders who occasionally need to use credit when there is not sufficient settled funds in the account to cover a purchase. A misconception on margin accounts is that if you have a security in the account then there is automatically a loan. This thinking is incorrect. Positions held on the margin side of the account can be fully paid for with no margin loan. You only borrow money once you use all of the available settled cash in your account and then borrow using available credit in your margin account. Once you use the credit, then interest will accrue on your loan.

Good Faith Violation

A good faith violation occurs when you buy a security and sell it before paying for the purchase in full with settled funds. Cash deposit or the settled sale proceeds of fully paid for securities qualify as settled funds. This violation event is created at the time of the sale of the security during the end of day.

Margin Accounts

What is Margin?

Margin borrowing is a type of leveraged transaction in which your obligations are secured by long securities held in your account. Funds may be borrowed to make additional trades or they may simply be withdrawn from the account as cash. When you borrow on margin, you pay interest on the loan until it is repaid.

In a leveraged transaction you have greater opportunity for profit and loss. For this reason, leveraged transactions are riskier than non-leveraged transactions. If the value of securities held as collateral falls or if the price of securities sold short increases, you may be subject to a margin call and your securities may be liquidated. You should carefully consider market conditions and your financial position, investment objectives, and risk tolerance to determine whether margin borrowing is appropriate for you.

Margin accounts are susceptible to additional risks and are subject to approval by U.S. Bancorp Investments. The minimum balance required for a margin account is $2,000 and the minimum balance required to day trade in a margin account is $25,000. Eligible securities may be used as collateral against which funds can be borrowed (“leveraged”) to buy more securities, based upon your available holdings. Please contact Wealth Management Advisory and Service Center or your Wealth Management Advisor for more information.

Margin Disclosure Statement

The Margin Agreement document provides some basic facts about purchasing securities on margin and 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 U.S. Bancorp Investments. Contact Wealth Management Advisory and Service Center or your Wealth Management Advisor to request a copy of the Margin Agreement document.

Short sales

At this time, U.S. Bancorp Investments does not participate in Short Selling.

Key Terms

Broker Call Rate: The interest rate banks charge broker-dealers for money used to finance investors’ margin loans.

Concentrated account: An account where 1 or 2 securities make up 50% or more of the market value of the account.

Corporate Insider: A director or senior officer of a company or any person or entity that beneficially owns more than 10% of a company’s voting shares.

Day Trading: Buying and selling the same security on the same day or selling and buying the same security on the same day in a margin account.

Day Trading Buying Power: Funds available in a margin account to place trades on a given trading day and only applies when you have been flagged as a day trader.

Equity: Indicates the total amount owned (long) as well as liquid value of the account.

Fed Call (Initial Call): Usually a lower threshold than a Maintenance call. A demand for cash and/or securities under federal margin regulations due to a transaction initiated in a margin account and enough buying power does not exist in the account.

FINRA (Financial Industry Regulatory Authority): The non-governmental organization that regulates member brokerage firms and exchange markets.

Margin Balance: This is the negative amount in the Cash & Equivalents line. If this amount is different than the Settlement balance, it indicates there was a Trade on Margin recently.

Margin Buying Power (fully marginable securities): Total amount of funds available for the purchase of equities using margin, if approved for margin trading. To apply, contact Wealth Management Advisory and Service Center.

Margin Equity %: The percent of the market value that the client owns and determines if there is a call.

Margin Loan: The amount of money the broker-dealer (U.S. Bancorp Investments, Inc.) lends to the client. It can be comprised of the portion of the purchase price of securities that the broker-dealer (U.S. Bancorp Investments, Inc.) lends to the client or cash withdrawn from the account.

Margin/Maintenance Call: A maintenance call occurs when a client’s account equity falls below the minimum maintenance requirement. The broker-dealer will contact the client to bring the equity % above its minimum requirement. Upon receiving a maintenance call, a client has 3 business days to bring funds forward. A demand for cash and/or securities to a customer when the market value in a margin account depreciates enough to cause the equity in the account to fall below the house requirement.

Marginable Security: Any security that trades on a national exchange, debt securities, which include various types of bonds or notes, warrants to subscribe to or purchase a marginable security and mutual funds (must be held for 30 day; cannot be purchased on margin).

Market Value: Indicates total value of investments held in the account.

Non-Margin Buying Power (options and non-marginable securities): Total amount of funds available for the purchase of options or non-margin eligible securities, if approved for margin trading. Retirement accounts are not eligible. To apply, contact Wealth Management Advisory and Service Center.

Pattern Day Trader Status: You are considered as pattern day trader if you place four or more day trades in a margin account within five successive trading days.

Note: U.S. Bancorp Investments does not promote Day Trading. However, we do monitor Day Trading activity. A Pattern Day Trader designation requires a minimum Margin equity plus cash in the amount of $25,000 at all times or the account will be issued a Day Trade Minimum Equity Call. Options and cash investments do not count toward this requirement. A Non-Pattern Day Trade account requires a minimum of $2,000 in margin equity. All trades in margin accounts are subject to Day Trade Buying Power Limitations

Reg T: The Federal Reserve Board regulation that governs the extension of credit broker-dealer may extend to customers for the purchase of securities.

Establishing a Margin Account

Margin Eligible Accounts

Most account type are eligible for margin. The following accounts are not eligible for margin:

• IRAs
• Uniform Gift/Transfer to Minor Accounts
• Pledged Accounts
• Control Person Accounts
• Pension and/or Profit-Sharing Accounts

The following accounts require additional documentation authorizing margin trading:

• Corporate Accounts
• Trust Accounts
• Unincorporated Organizations

To apply for Margin, Contact Wealth Management Advisory and Service Center or your Wealth Management Advisor.

What securities are eligible for margin trading?

Most of your margin trades will be Common Stock and ETFs. There is no comprehensive list of margin-eligible securities, however, each of the following are generally margin-eligible:

• Common Stock over $3
• ETF over $3
• Municipal Bonds (Investment grade only)
• Corporate Bonds (Investment grade only)
• Convertible Corporate Bonds (Investment grade only)
• Preferred Stock
• UIT (Taxable & Non-Taxable Trust Fund)
• Treasury Bonds, Notes & Bills
• Mutual Funds (must be held for 30 days before being held on margin)

Note: U.S. Bancorp Investments may choose to not use or change its decision on use of any individual security as collateral against a margin loan.

Federal Reserve Board: Regulation T

An investor may borrow up to 50% of the purchase price of securities that can be bought using a loan from a broker or dealer. The remaining 50% of the price must be funded with cash. The Federal Reserve Bank determines what securities are not marginable for example:

• Options
• Penny Stocks – Pink Sheet Stocks – Etc.

Initial Requirement

The Initial Margin Requirement is the percentage of the purchase price that must be covered by cash/collateral when using a margin account. Most of your margin trades will be Common Stock.

• Common Stocks: 50%
• Corporate Bonds: 50%
• Non-Leveraged ETFs: 50%
• Municipal Bonds: 20%
• Treasury Bonds & Notes: 10%

Restrictions to Margin Trading

• To trade on margin or day trade, the account must have a minimum of $,2000 equity.
• A corporate insider or 10% shareholder cannot margin the stock which they are affiliated with.
• Margin cannot be added to a qualified account.
• Margin accounts cannot be pledged as collateral.

Margin Interest Rates

Interest is accrued daily and charged monthly on the average net debit balance during that month. If an interest rate change occurs during that month, there will be two separate line items for interest charges on the statement. If during that month the debit balance moves between interest rate tiers, the interest rate will be an average. The actual interest calculations are done by computer, but interest is arrived at by multiplying the net debit balance by the effective rate of interest divided by 360 times the number of days outstanding.

Broker’s Call Rate

The broker call rate is based on current short-term loan rates set by LIBOR

• U.S. Bancorp Investments charges the broker call rate and depending on the dollar value of debit balance, we charge an additional percentage.
• Interest is calculated and accrues daily.
• Interest is added to the debit balance at the end of the month.

Interest Tiers Based on Debit Balance:

NYSE & FINRA: Maintenance Requirements

After an investor has bought securities on margin, the minimum maintenance requirement is 25% of the total market value of the securities in the margin account. A broker-dealer can have their own “house rules” as long as the minimum requirement is at or above 25%.

Note: U.S. Bancorp Investments house requirement is 30%

The margin maintenance requirement is the minimum amount of equity that must be maintained in a security. If a security’s equity falls below its maintenance minimum, the firm will contact the client to bring cash or securities forward to bring the equity to/above its maintenance minimum. The following is a list of securities and their maintenance requirement (by % equity):

Common Stock is generally, 30%, but varies by the price per share (see below).

• Share price > $7.00: 30%
• $5.00 < share price < $7.00: 40%
• $4.00 < share price < $5.00: 80%.
• $3.00 < share price < $4.00: 85%
• Share price < $3.00: 100% - not margin eligible

On concentrated positions, there is an additional equity maintenance requirement:

• Debit Balance between $50,000 and $99,999.99: add 5% to overall account maintenance
• Debit Balance > $99,999.99: add 10% to overall account maintenance

Exchange-Traded Funds

• Non-Leveraged ETF: 30%
• Double Leveraged ETF: 60%
• Triple Leveraged ETF: 90%
• Quadruple Leveraged ETF: 100%

Bonds

• Municipal Bonds: 20%
• Corporate Bonds: 25%
• Convertible Corporate Bonds: 30%

Preferred Stock

• Preferred Stock: 30%
• Convertible Preferred Stock: 30%

UIT (Taxable & Non-taxable trust funds): 30%

Treasuries

• Treasury Bonds: 10%
• Treasury Notes: 10%
• Treasury Bills: 1%

Mutual Funds: 30% once the shares are held 30 days.

Maintenance / Margin Call

When a margin account falls below the minimum maintenance required it will trigger a maintenance call. A margin maintenance call is a demand from your broker-dealer firm to increase the amount of equity in your account. A demand from the broker-dealer requesting funds is due immediately though in practice it could be 3-4 business days per the firm’s discretion. To satisfy the maintenance call you can deposit cash or marginable securities to your account, or you can cover the maintenance call by selling existing positions to generate cash. As a policy, U.S. Bancorp Investments will attempt to contact you but is not obligated to do so and reserves the right to initiate liquidation procedures without notice.

To satisfy the maintenance call you can:

• Deposit cash equal to the amount of the call.
• Deposit fully paid marginable securities with a market value of double the amount of the call to your account.
• Sell existing positions in your margin account.

As a policy, U.S. Bancorp Investments will attempt to contact you but is not obligated to do so and reserves the right to initiate liquidation procedures without notice.

U.S. Bancorp Investments has the right to:

• Sell your securities without notice.
• Pursue necessary action to collect any debit balance that exists beyond the liquidation of all securities in the margin account.

How is a maintenance call calculated?

Calculation: (Current Market Value x Maintenance requirement) - Current Equity = Maintenance Call amount

Calculation Example

You purchased 500 shares of CDF at $15 a share which equals market value of $7,500. You put up $3,750 and U.S. Bancorp Investments (as broker-dealer) loaned the other $3,750 for a total purchase of $7,500. CDF common stock decreased in value to $9 a share giving it a market value of $4,500.

Equity Calculation: (Current Market Value - Margin Loan) / Current Market Value = Percent Equity

Maintenance Call Amount: (Current Market Value x Maintenance requirement) - Current Equity = Maintenance Call amount

In this example

• Equity calculation ($4,500 - $3,750) / $4,500 = 16% equity or $4,500 - $3,750 = $750 equity
• Maintenance Call: ($4,500 X .3) - $750 = $600

How do I calculate the amount to meet a margin call?

Divide the margin call amount by the margin requirement on the position that you choose to sell. If there is a $3,000 call and the margin requirement on the position to sell is 30%, you would need to sell $10,000 worth of stock. $3,000 / .30 = $10,000.

Examples of how the market can impact your margin position

Margin Example 1: Initial Position

You want to buy 200 shares of XYZ common stock in your margin account. XYZ common stock is trading at $50 a share. The total purchase price would be $10,000. Since you want to buy a total of $10,000 worth of XYZ common stock, you would only need to put up $5,000 of your own money. Remember, Reg-T allows you to borrow up to 50% of the purchase price of securities. You purchase the stock and now hold 200 Shares of XYZ at $50 a share. You are sitting at a 50% equity holding. The stock is greater than $7 a share so the minimum maintenance requirement on the security is 30%. Since the initial position is at 50% equity, your account is in good standing.

In this example:

• You purchased $10,000 total of that security but borrowed $5,000 to do so. At the time of the purchase the market value of the security is $10,000 and the money borrowed, $5,000, is the debit balance.
• ($10,000 - $5,000) / $10,000 = 50%. This is your equity percentage.

Margin Example 2: Security Increases in Value

You want to buy 400 shares of ABC common stock trading at $20 a share with a total purchase value of $8,000. You put up the required $4,000 and U.S. Bancorp Investments (as broker-dealer) loans the other $4,000. Over two weeks, ABC increases in value by $5 a share to $10,000. What is your current equity?

Equity Calculation: (Current Market Value - Margin Loan) / Current Market Value = Percent Equity

Market Value - Margin Loan = Equity amount

In this example:

• ($10,000 - $4,000) / $10,000 = 60% equity
• $10,000 - $4000 = $6,000 equity

The stock is trading at greater than $7 a share so the minimum maintenance requirement on the security is 30%. Since you are at 60% equity, the account is in good standing

Margin Example 3: Security Decreases in Value

You want to buy 500 shares of CDF common stock trading at $15 a share with a total purchase price of $7,500. You put up the required $3,750 and U.S. Bancorp Investments (as broker-dealer) loans the other $3,750. Over two weeks, CDF decreases in value by $6 a share to $4,500. What is your current equity?

Equity Calculation: (Current Market Value - Margin Loan) / Current Market Value = Percent Equity

Market Value - Margin Loan = Equity amount

In this example:

• ($4,500 - $3,750) / $4,500 = 16% equity
• $4,500 - $3,750 = $750 equity

The security is trading at $9 a share so the minimum maintenance requirement is 30% equity. Since you are now at 16% equity, you are below the minimum maintenance requirement for this security. This puts you in a maintenance call, also known as a margin call.

Concentrated Margin Position

A concentrated position would be 1 or 2 positions that make up more than half the market value of the entire account. An account with a margin debit of $50,000 or greater would have an additional 5% added to the account margin requirement. U.S. Bancorp Investments house requirement is 30% so in this case the margin requirement for a concentrated account would be 35%.

An account with a margin debit of $100,000 or greater would have an additional 10% added to the account margin requirement. U.S. Bancorp Investments house requirement is 30% and in this case margin requirement would be 40%.

Concentrated positions require a higher up-front amount of account equity and when you sell it may release a smaller amount of margin buying power.

FAQ

Are there any restrictions to trading on margin via website/mobile app?

Yes. Only self-directed clients can trade online or on the mobile app.

Note: If you have a Margin account, the default trade type will be Margin.

Can I short-sell securities in my margin account?

No. U.S. Bancorp Investments does not permit short selling.

Why use a margin account if approved?

• You can increase the gains potential, however, you could also inflate loss potential.
• Day trading.
• Allows you to trade without waiting for cash settlement rules.

Where can I find the current Broker Call Rate?

The Broker Call Rate, also referred to as Call Money, is printed daily in the Wall Street Journal.

When can I find more information on Margin and its requirements?

You can get more information about margin from our regulators:

FINRA: Investing with Borrowed Funds

SEC: Margin: Borrowing Money to Pay for Stocks

Money Movement

How to transfer money between your U.S. Bancorp Investments account and U.S. Bank account

You can transfer funds online and via the U.S. Bank Mobile app, including immediate, future-dated (one-time), and recurring transfers, between your U.S. Bancorp Investments accounts and eligible U.S. Bank checking and savings accounts in just a few steps. Select Transfers from the Transfers menu. Next, choose the accounts from the list of eligible accounts you want to transfer From and To. Fill in the amount you'd like to transfer, select a date and click Next. When you have reviewed the transaction for accuracy, submit your request from the Review screen. You will receive a confirmation your request has been successfully submitted.

Cut-off times: Cut-off times for money transfers will vary depending on the direction of the money movement. One-time (same day) money transfers are made immediately if they are completed before the cut-off. Requests submitted over the weekend, on a holiday, or after the cut-off time will be processed on the next business day. The cut-off time information will display on the Review & Submit screen.

Can funds be transferred between U.S. Bancorp Investments accounts?

You may transfer funds online between a U.S. Bancorp Investments account (non-IRA) and another U.S. Bancorp Investments account (non-IRA). You may also transfer funds between a U.S. Bancorp Investments IRA account to another U.S. Bancorp Investments IRA account as a non-taxable event (traditional IRA to traditional IRA, ROTH to ROTH and SEP to SEP). Select Transfers from the Transfers menu.

Can I make an IRA contribution or an IRA distribution online or via the U.S. Bank Mobile app?

Yes. IRA contributions and distributions can be made online and using the U.S. Bank Mobile app.

Do I need to pay federal tax at the time of an IRA distribution?

Unless your withdrawal is from a ROTH IRA, or you have elected to withhold federal tax, 10% federal income taxes are required to be withheld from a distribution. Discuss IRA distribution options with your tax advisor for tax considerations.

What is the maximum amount of tax withholding I can request at the time of distribution?

State income taxes may be withheld based on the requirements of your state of residence.

Can I contribute to multiple U.S. Bancorp Investments IRA accounts at the same time?

Yes. If you have multiple IRA accounts, the annual contribution limit applies to all of your accounts combined.

Where do I check my transfer status and edit or cancel transfers between my U.S. Bancorp Investments account and U.S. Bank account?

You may check on the status of your internal transfers from the Transfers/Manage My Transfers tab (online) and the Transfers/Managed Scheduled Transfers screen (mobile). Future-dated (one-time) transfers and recurring transfers can be modified or canceled prior to the transfer date. Transfers that can be edited will display an Edit/Cancel link.

How to transfer money between your U.S. Bancorp Investments account and other financial institutions

You can transfer funds online, including one time, future-dated, and recurring transfers between your U.S. Bancorp Investments accounts (non-IRA) and eligible accounts at other financial institutions. Select External Transfers from the Transfers tab. Next, choose the account from the list of eligible accounts you want to transfer From and To in the drop down field. Fill in the amount you'd like to transfer and then select a transfer date. When you have reviewed the transaction for accuracy, click Confirm on the Review Transfer screen. You will receive confirmation that your request has been submitted.

Delivery and Cut-off times: The delivery speeds can be found on the External Transfers tab. Once you select a From and To account, the delivery speed available will display. The delivery speed is the date at which the transfer will be completed and any fees associated with that delivery. Standard delivery is three business days and is free of charge. Cut-off time for standard is Midnight CT.

Where do I check my transfer status and edit or cancel online transfers between my U.S. Bancorp Investments account and account at another financial institution?

You may check the status for a transfer from the Activity tab on the External Transfer page (in process, pending and completed). To Edit your scheduled transfer, click the Edit link next to the transfer in the Amount column. To Cancel your transfer, select the arrow left of the scheduled transfer on the Activity tab and click Cancel.

What about transfers that are not submitted online or mobile?

For Transfers requests that are not submitted via online or mobile, you will need to link the bank account to your U.S. Bancorp Investments account. To link your U.S. Bancorp Investments account (non-IRA) to a bank account from another institution, print, complete and mail the Bank Link Request form. You will need to include a copy of a voided check or pre-printed savings slip.

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