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 Legal
Important Information on Penny Stocks
The U.S. Securities and Exchange Commission (SEC) requires your broker to
give this statement to you, and to obtain your signature to show that you
have received it, before your first trade in a penny stock. This statement
contains important information - and you should read it carefully before you
sign it, and before you decide to purchase or sell a penny stock.
In addition to obtaining your signature, the SEC requires your broker to
wait at least two business days after sending you this statement before
executing your first trade to give you time to carefully consider your trade.
Penny stocks can be very risky.
Penny stocks are low-priced shares of small companies. Penny stocks may
trade infrequently - which means that it may be difficult to sell penny stock
shares once you have them. Because it may also be difficult to find
quotations for penny stocks, they may be impossible to accurately price. Investors
in penny stock should be prepared for the possibility that they may lose
their whole investment.
While penny stocks generally trade over-the-counter, they may also trade
on U.S. securities exchanges, facilities of U.S. exchanges, or foreign
exchanges. You should learn about the market in which the penny stock trades
to determine how much demand there is for this stock and how difficult it
will be to sell. Be especially careful if your broker is offering to sell you
newly issued penny stock that has no established trading market.
The securities you are considering have not been approved or disapproved
by the SEC. Moreover, the SEC has not passed upon the fairness or the merits
of this transaction nor upon the accuracy or adequacy of the information
contained in any prospectus or any other information provided by an issuer or
a broker or dealer.
Information you should get.
In addition to this statement, your broker is required to give you a
statement of your financial situation and investment goals explaining why his
or her firm has determined that penny stocks are a suitable investment for
you. In addition, your broker is required to obtain your agreement to the
proposed penny stock transaction.
Before you buy penny stock, federal law requires your salesperson
to tell you the “offer” and the “bid” on
the stock, and the “compensation” the salesperson and the
firm receive for the trade. The firm also must send a confirmation of these
prices to you after the trade. You will need this price information to
determine what profit or loss, if any, you will have when you sell your
stock.
The offer price is the wholesale price at which the dealer is willing to
sell stock to other dealers. The bid price is the wholesale price at which
the dealer is willing to buy the stock from other dealers. In its trade with
you, the dealer may add a retail charge to these wholesale prices as
compensation (called a “markup” or “markdown”).
The difference between the bid and the offer price is the dealer’s “spread.”
A spread that is large compared with the purchase price can make a resale of
a stock very costly. To be profitable when you sell, the bid price of your
stock must rise above the amount of this spread and the
compensation charged by both your selling and purchasing dealers. Remember
that if the dealer has no bid price, you may not be able to sell the stock
after you buy it, and may lose your whole investment.
After you buy penny stock, your brokerage firm must send you a
monthly account statement that gives an estimate of the value of each penny
stock in your account, if there is enough information to make an estimate. If
the firm has not bought or sold any penny stocks for your account for six
months, it can provide these statements every three months.
Additional information about low-priced securities - including penny
stocks - is available on the SEC’s Web site at http://www.sec.gov/investor/pubs/microcapstock.htm.
In addition, your broker will send you a copy of this information upon
request. The SEC encourages you to learn all you can before making this
investment.
Brokers’ duties and customer’s rights and remedies.
Remember that your salesperson is not an impartial advisor - he or she is
being paid to sell you stock. Do not rely only on the salesperson, but seek
outside advice before you buy any stock. You can get the disciplinary history
of a salesperson or firm from FINRA at 1-800-289-9999 or contact FINRA via the
Internet at www.finra.org.
You can also get additional information from your state securities official.
The North American Securities Administrators Association, Inc. can give you
contact information for your state. You can reach NASAA at (202) 737-0900 or
via the Internet at www.nasaa.org.
If you have problems with a salesperson, contact the firm’s compliance
officer. You can also contact the securities regulators listed above.
Finally, if you are a victim of fraud, you may have rights and remedies under
state and federal law. In addition to the regulators listed above, you also
may contact the SEC with complaints at (800) SEC-0330 or via the Internet at help@sec.gov.
Anti-Money Laundering Program
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, we will ask for your name, physical address, date of birth and other information that will allow us the ability to identify you. We may also ask for a copy of your driver’s license, passport or other identifying documents.
FINRA Public Disclosure Information
FINRA Regulation Public Disclosure Program
HOTLINE NUMBER: 800-289-9999
FINRA Regulation Web Site Address http://www.finra.org.
You may review/order the investor brochure that includes information describing the Public Disclosure Program from the website or by calling 800-289-9999.
Business Continuity Plan
Global Resource Investments, Ltd. has developed a Business Continuity Plan on how we will respond to events that significantly disrupt our business. Since the timing and impact of disasters and disruptions is unpredictable, we will have to be flexible in responding to actual events as they occur. With that in mind, we are providing you with this information on our plan.
Contacting Us – If after a significant business disruption you cannot contact us as you usually do at 800-477-7853 or 760-943-3939, you should call our alternative number 760-943-3937, alternative fax 760-943-3933 or go to our web site at www.globalresourceinvestments.com. If you cannot access us through either of those means, you should contact our clearing firm, RBC Dain Rauscher Correspondent Services at 612-607-8903 or www.rbcdaincs.com for instructions on how it may provide prompt access to funds and securities, enter orders and process other trade-related, cash, and security transfer transactions.
Our Business Continuity Plan – We plan to quickly recover and resume business operations after a significant business disruption and respond by safeguarding our employees and property, making a financial and operational assessment, protecting the firm’s books and records, and allowing our customers to transact business. In short, our business continuity plan is designed to permit our firm to resume operations as quickly as possible, given the scope and severity of the significant business disruption.
Our business continuity plan addresses: data back up and recovery; all mission critical systems; financial and operational assessments; alternative communications with customers, employees, and regulators; alternate physical location of employees; critical supplier, contractor, bank and counter-party impact; regulatory reporting; and assuring our customers prompt access to their funds and securities if we are unable to continue our business.
Our clearing firm, RBC Dain Rauscher Correspondent Services, backs up our important records in a geographically separate area. While every emergency situation poses unique problems based on external factors, such as time of day and the severity of the disruption, we have been advised by our clearing firm that its objective is to restore its own operations and be able to complete existing transactions and accept new transactions and payments within the same business day. Your orders and requests for funds and securities could be delayed during this period.
Varying Disruptions – Significant business disruptions can vary in their scope, such as only our firm, a single building housing our firm, the business district where our firm is located, the city where we are located, or the whole region. Within each of these areas, the severity of the disruption can also vary from minimal to severe. In a disruption to only our firm or a building housing our firm, we will transfer our operations to a local site when needed and expect to recover and resume business within four hours. In a disruption affecting our business district, city, or region, we will transfer our operations to a site outside of the affected area, and expect to recover and resume business within the same business day. In either situation, we plan to continue in business, transfer operations to our clearing firm if necessary, and notify you through our web site www.globalresourceinvestments.com or our customer emergency number, 760-943-3937, how to contact us. If the significant business disruption is so severe that it prevents us from remaining in business, we will assure our customer’s prompt access to their funds and securities.
SEC Order Handling Disclosure -- SEC Rule 606
As adopted in November
2000, SEC Rule 606 requires all broker-dealers that route orders in equity
and option securities to make available quarterly reports that present a
general overview of their routing practices. As stated above, Global
Resource Investments, Ltd. (GRIL) is an introducing broker-dealer.
Transactions effected by GRIL are executed and settled through our clearing
firm, RBC Correspondent Services (RBC CS), a division of RBC Capital Markets
Corp., Minneapolis, Minnesota and also through third party broker dealers.
Being that RBC CS makes the routing decisions concerning the customer orders
routed through them without regard to the identity of GRIL as its
introducing broker-dealer, GRIL feels that RBCD is in the best position to
prepare a quarterly report that reflects the clearing firm’s routing
practices on our behalf. Please review RBC CS' SEC Order Handling Disclosure
at:
http://www.rbcdaincs.com/DCS_1.2/orderhandlingdisclosure.
Privacy Policy
Global Resource Investments, Ltd. (“Global”) is an introducing broker/dealer at which you have a brokerage account. Our firm has a contractual agreement with RBC Dain Correspondent Services (RBC Dain CS) to serve as our clearing firm. This fully disclosed agreement states the responsibilities of each party. Prior to the agreement becoming effective, RBC Dain CS is responsible for making all disclosures to our firm's designated examining authority as required by NYSE Rule 382. Each client of our firm is notified of the relationship via a disclosure letter. The disclosure letter details the responsibilities that our firm (the introducing broker-dealer) and RBC Dain CS (the clearing firm) have to the client. Although client assets are held by RBC Dain Rauscher Inc., neither RBC Dain Rauscher™ nor RBC Dain CS has responsibility for the financial condition or performance of our firm or our Financial Consultants. The Securities and Exchange Commission has adopted Regulation S-P, privacy rules promulgated under section 504 of the Gramm-Leach-Bliley Act. A financial institution must provide its customers with a notice of its privacy policies and practices.
Confidentiality and security: Global uses procedural, physical and electronic system safeguards to store and secure information about you in compliance with federal standards. Our systems protect your information from unauthorized access, alteration and destruction. Access is permitted only to those individuals within our organization who need the information to perform their job responsibilities.
Where we get information: The information we collect about you comes primarily from your Global New Account Documentation. This includes such information as your name, address and social security number that you may have provided on these applications, agreements or other forms. In addition, we maintain records of each of your transactions and holdings at our clearing firm.
To whom we disclose the information: We provide information about current or former clients from the sources described above to parties outside Global only as described below:
- To our clearing firm, RBC Dain Correspondent Services, in order to process activities for your investment account(s) with Global, the clearing firm handles all custody functions, processes & settles trades, transmits 1099 reporting to the IRS, sends monthly statements of your account(s), etc.
- To companies with whom we have joint marketing agreements. A joint marketing agreement is one in which another financial institution offers a product or service jointly with Global such as providing credit card access to your account. These institutions are prohibited by agreement from using information about you except for the narrow purpose for which we gave it to them.
- To other companies as necessary to process your business. For example our clearing firm transmits your account and transactional information to the company that prints your account statements. Third parties in the category, like those in the category above, must limit their use of the information to the purpose for which it was provided.
- Where required by law or regulation. Examples include responses to a subpoena, court order or regulatory demand.
- As authorized by you. You may direct us, for example, to send your account statements and trade confirmations to a third party or request bank wire transmissions.
- As otherwise authorized, permitted by law or you. For example, the law permits us to respond to requests for information about you from a consumer-reporting agency.
Global employees use information about you to respond to your needs and to provide you with information about specific products in which you may have an interest. We instruct our employees to use strict standards of care in handling the personal and confidential information of customers. We remind them regularly of their obligations regarding the confidentiality of customer information. Additionally as a security measure, Global has employed a bonded company to shred and recycle all paper that would otherwise be thrown out as trash.
Option to opt out and change notices:
If for any reason at any time in the future, we find it necessary
to disclose any of your personal information in a way that
is inconsistent with this policy, we will give you advance
notice of the proposed change and the opportunity to opt out
of such disclosure.
Testimonials: Testimonials
appearing on this website may not be representative of the
experience of other clients nor should they be considered
a guarantee of future performance or success. Global Resource
Investments Ltd. paid no fees or compensation for the aforementioned
testimonials.
PROHIBITED ACCOUNTS Pursuant to US regulations issued under section
311 of the USA PATRIOT Act, 31 CFR 103.192, we are prohibited from opening or
maintaining a correspondent account for, or on behalf of, the Latvian bank
VEF Banka, its subsidiaries, including Veiksmes Lizings, and Commercial Bank
of Syria, its subsidiaries, including Syrian Lebanese Commercial Bank (the
“Specified Banks”). The regulations also require us to notify you that
your correspondent account with our firm may not be used to provide the
Specified Banks with access to our firm. If we become aware that the
Specified Banks are indirectly using the correspondent account you hold at
our firm, we will be required to take appropriate steps to prevent such
access, including terminating your account.
COMPLAINTS Complaints regarding your account should be directed to Ria
Gost, Chief Compliance Officer, Global Resource Investments Ltd, 7770 El
Camino Real, Carlsbad, CA, 92009. Phone (800) 477-7853 or (760) 943-3939
x1103.
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