Can someone help me put this in plain terms, so my friend can understand what he's signing?
Thanks!
Thanks!
Options Agreement Terms: I represent that I am aware of the inherent risks associated with options
trading and that I am financially able to bear such risks and withstand options trading losses. I
have read and understood the Terms and Conditions that govern this Options Account and the special
risk statement for uncovered option writers, where applicable, and agree to be bound by them as
currently in effect and as amended from time to time. I have also fully read and understood the
disclosure document entitled Characteristics and Risks of Standardized Options issued by the
Options Clearing Corporation and delivered to me by OptionsXpress either electronically or in hard copy.
Loan or Pledge of Securities (Margin Customers Only): You hereby authorize Legent Clearing Corp. to
lend either to itself or to others any securities held by the broker in your margin account and to
carry such property in its general loans. You agree to the terms contained in the "Appendix A ? Margin
Account Special Agreement Terms" and will be charged interest in accordance with such terms. Such
property may be pledged, repledged, hypothecated or rehypothecated without notice to you either
separately or in common with other such property for any amounts due to Legent Clearing Corp.
thereon or for a greater sum and Legent Clearing Corp. shall have no obligation to retain a
like amount of similar property in its possession and control. By signing this agreement you
acknowledge that the securities in your margin account may be loaned to Legent Clearing Corp. or
loaned out to others. I also acknowledge optionsXpress right to liquidate securities held in my
account at any time and without prior notice to me, in optionsXpress sole discretion when such
action is anticipated or deemed necessary to protect optionsXpress from potential loss.
Agreement to "Terms and Conditions": I (or we) hereby request that optionsXpress, Inc.,
(optionsXpress) open an account as indicated above, and I acknowledge that I have read and understood
both the "Terms & Conditions" agreement that governs this account and all agreements regarding use of
data and exchange quotes, and I agree to be bound by these agreements as currently in effect and as
amended from time to time and posted on the optionsXpress website. I have legal capacity to enter
into and be bound by this legal contract. I agree to promptly advise optionsXpress in writing of any
change in my residential, employment, and financial or legal status. I agree to receive all legal
account notices, including all confirmation of trades, by electronic means and to access my account
regularly to receive such notices, according to the terms of optionsXpress' Electronic Delivery
Agreement posted online. I EXPRESSLY ACKNOWLEDGE THAT I AM SOLELY RESPONSIBLE FOR ALL INVESTMENT
DECISIONS MADE REGARDING MY ACCOUNT, AND THAT optionsXpress DOES NOT MAKE RECOMMENDATIONS REGARDING
INVESTMENTS, TAXES, OR LEGAL MATTERS. I understand that my account is governed by a pre-dispute
arbitration clause contained in optionsXpress' "Account Terms and Conditions" section #46.
Substitute IRS Form w-9: Under penalties of perjury, I certify that: 1. The number shown on this form is
my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am
not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not
been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result
of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer
subject to backup withholding, and 3. I am a U.S. person (including a U.S. resident alien).
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