TradeKing s Fixed Income Center

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Jordan Morrison
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TradeKing s Fixed Income Center June 30, 2011 Disclaimer Options involve risks and are not suitable for all investors.

Additional copies may be obtained by calling TRADEKING at 877-495-KING visiting www.tradeking.

System response and access times may vary due to market conditions, system performance, and other factors.

1 TradeKing s Fixed Income Center June 30, 2011 Disclaimer Options involve risks and are not suitable for all investors. Prior to buying or selling options, an investor must receive a copy of Characteristics and Risks of Standardized Options, sent to you in previous communication. Additional copies may be obtained by calling TRADEKING at KING visiting or by downloading the file in the pop-up window on your screen. System response and access times may vary due to market conditions, system performance, and other factors. Any strategies discussed and examples using actual securities and price data are strictly for illustrative and educational purposes only and are not to be construed as an endorsement, recommendation, or solicitation to buy or sell securities. Past performance is not a guarantee of future results. Consider the following when making an investment decision: your financial situation, your risk profile and transaction costs. 2 1

2 Disclaimer The projections or other information generated by TradeKing's tools regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. TradeKing's Fixed Income platform is provided by Knight BondPoint, Inc. All bids (offers) submitted on the Knight BondPoint platform are limit orders and if executed will only be executed against offers (bids) on the Knight BondPoint platform. Knight BondPoint does not route orders to any other venue for the purpose of order handling and execution. The information is obtained from sources believed to be reliable; however, its accuracy or completeness is not guaranteed. Information and products are provided on a best-efforts agency basis only. Please read the full Fixed Income Terms and Conditions. Fixedincome investments are subject to various risks including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. Webinars are provided for educational and informational purposes only. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. TradeKing provides self-directed investors with discount brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice. You alone are responsible for evaluating the merits and risks associated with the use of TradeKing's systems, services or products. 3 TradeKing s Fixed Income Center June 30,

3 Quick Review What is Fixed Income? A type of investment that represents a liability (IOU) of a corporation or other entity Entity sells bonds to raise capital for business expenditures Fixed income products are often generalized by the term Bonds AKA s Debt, Financing, or Credit Common types: Corporate bonds (corporates); Treasury bonds (treasuries); Agency bonds (agencies); Municipal bonds (munis); Certificates of Deposit (CDs) 5 Quick Review Why Fixed Income? Potential to earn income on principal invested Potential Tax Benefits Some bonds are not taxed at the federal and/or state levels Slow and steady generally predictable returns, but not guaranteed Returns on Fixed Income is affected by gain/loss of sale Investing in bonds carries risks Credit Risk Default Risk Interest Rate Risk Geopolitical Risk Portfolio diversification can help lower risk when compared to 100% equity portfolio Lower risk does not mean safe Some bonds can have more risk than some stocks 6 3

4 Which Securities Can You Trade? Treasury Bonds Municipal Bonds (New Issue & Secondary Markets) Corporate Bonds (New Issue & Secondary Markets) CDs (New Issue & Secondary Markets) Agency Bonds Strips & Zeros *** Investment Grade Only *** 7 Credit Agencies and Ratings 8 4

5 Commissions Most Bonds $4.95 per Bond. $14.95 minimum charge per transaction Treasuries $24.95 per transaction CDs $24.95 per transaction * Bonds are subject to a TAF fee up to $0.75 per bond traded. * TradeKing may act as principal on any fixed-income transaction. When acting as principal, we will add a markup to any purchase, and subtract a markdown from every sale. This markup or markdown will be included in the price quoted to you. 9 TradeKing Resources General Bond Info /B Bl Bond Ladders /B dd

6 Open for Questions Speaker: Chris Lebhar Audio Help: Thank you for your participation! Speaker: Chris Lebhar Audio Help:

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