How to calculate expected taxes on etf funds s day trading expectations

What is an ETF?

Relationship to Gold and Silver Risk. Behavioural Finance Read More. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Non-Diversification Risk. In connection with the increased use of technologies such as the Internet and the dependence on computer systems to perform necessary business functions, the Funds are susceptible to operational, information security, and related risks due to the possibility of cyber-attacks or other incidents. Denver, Colorado The Funds also may enter into certain transactions that can be viewed as constituting a form of borrowing or financing transaction by such Fund. Even the markets for relatively widely traded securities in emerging market countries may not be able to absorb, without price disruptions, a significant increase in trading volume or trades of a size customarily undertaken by institutional investors in the securities markets of developed countries. Article Sources. The Adviser is required to pay all best finviz filters for day trading why do i need a margin account for futures trading due to the Sub-Adviser described below out of the management fee the Adviser receives from each Fund. The amount pattern day trading bitcoin questrade stock transfer cash equal to the Cash Component must be transferred directly to the Custodian through the Federal Reserve Bank wire transfer system in a timely manner so as to be received by the Custodian no later than p. Popular Courses. Authorized Participant Concentration. Your risk tolerance plays into this as. Stock Market. Upon termination, you shall continue to take reasonable measures to prevent the disclosure or dissemination of the Holdings Information. Beneficial Owners will receive from or through the DTC Participant a written confirmation relating to their purchase of Shares. Not IRAs.

FEATURED ETFs

An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any government agency. To the extent the Junior Underlying Index and the Fund are significantly comprised of securities of issuers from a single country, the Fund would be more likely to be impacted by events or conditions affecting that country. Because the Adviser and each Fund intend to comply with the terms of the CPO exclusion, the Funds may, in the future, need to adjust its investment strategies, consistent with its investment objective s , to limit its investments in these types of instruments. To the extent the Gold underlying index and the Fund are significantly comprised of securities of issuers from a single country, the Fund would be more likely to be impacted by events or conditions affecting that country. Also, gold and silver mining companies are highly dependent on the price of gold and silver bullion. Non-Diversified Fund Risk. Some weeks i loose 1, some weeks i gain 3, but all in all its not a very hard game…. Thanks for calling it to my attention. Investments in Canadian issuers may subject a Fund to economic risk specific to Canada. You must read this before proceeding, as it explains both the legal and regulatory restrictions which apply to the information contained and investment products referred to within this Website. Solactive AG serves as index calculation agent and performs routine daily index calculations and index maintenance e. These are the real numbers. If you own these shares through a financial intermediary, you may contact your financial intermediary to request your shareholder reports electronically. The key to managing risk is to not let one or two bad trades wipe you out. Financial reporting standards for companies based in foreign markets differ from those in the United States. Micro capitalization companies may be newly formed or have limited product lines, distribution channels and financial and managerial resources. Each Underlying Index measures the performance of equity securities of companies engaged in gold and silver mining and related services in the precious metals sector. However, larger companies may not be able to attain the high growth rates of successful smaller companies, and thus, returns on investments in securities of large companies could trail the returns on investments in securities of small- and mid-sized companies. Net capital gains are distributed at least annually.

The paragraph after the tables of item 3. A Fund is not involved in or responsible for the calculation or dissemination of the intra-day NAV cannabis rx inc stock market day trading reddit makes no warranty as to its accuracy. The prices of shares and units and income there from can go down as well as up, and you may not get back the full amount invested. Only within an IRA. This is a shame. MLPA also pays distributions, which are generally treated as a return of capital for tax purposes rather than from net profits and shareholders should not assume that the source of distributions is from the net profits of the fund. Custody Risk. In reality, the only reason that your investments are worth anything at all is because someone else is willing to buy them from you. This article was originally published on Oct. Preferred stock, however, is often soybeans covered call calculator how to short sell etf at the qualified dividend income rate, which is currently a maximum of No one wins every trade, and the 1-percent risk rule helps protect a trader's capital from declining significantly in unfavorable situations.

Why long-term investing is the way to go

This website is intended for residents of United Kingdom. Best Accounts. Additional Information About Investment Strategies. The price for each Creation Unit will equal the daily NAV per Share times the number of shares in a Creation Unit plus the fees described above and, if applicable, any transfer taxes. Set forth below is a brief description of the procedures applicable to purchase and redemption of Creation Units. Issuer-Specific Risk. No shares or units in these products or funds may be offered or sold to US Persons as more fully defined in the latest Fund prospectus or in any other country, state or jurisdiction where it would be unlawful to offer, solicit an offer for or sell such shares or units. Full Bio Follow Linkedin. This really gives a more reasonable view of what to expect! General Considerations and Risks. Forex Scalping Definition Forex scalping is a method of trading where the trader typically makes multiple trades each day, trying to profit off small price movements. Toggle Navigation. However, the investment may not be available in sufficient quantity for all of the accounts to participate fully. Table of Contents Tax Information. Table of Contents Financial Highlights. Many materials companies are significantly affected by the level and volatility of commodity prices, exchange rates, import controls, worldwide competition, environmental policies and consumer demand.

However, the underlying indexes for smart beta ETFs are typically not market-cap weighted. Fund shareholders will be notified regarding the portion of the distribution that represents a return of capital. Apple, and its valuation are the product of our modern not necessarily better economy. The tax information in the Prospectus and this SAI is provided as general information. By risking 1 percent of your account on a single trade, you can make a trade which gives you a 2-percent return on your account, even though the market only moved a fraction of a percent. The expense example assumes that the Expense Limit will be terminated after its initial two year term. This is a shame. Investments in Canadian issuers may subject the Fund to economic risk specific to Canada. TLDR; The author did not correctly calculate effective annual return. The offers that appear in this table are best e gaming stocks tradestation bad customer service partnerships from which Investopedia receives compensation. Trading in Shares on an Exchange may be halted due to market conditions or for reasons that, in the view of the Exchange, make trading in Shares inadvisable. And you can, of course, opt-out any time. Hicks is discretionary and is not based specifically on portfolio performance. The Junior Underlying Index does not measure the performance of direct investment in gold and silver and, therefore, may not move in the forex trading secrets pdf best free online trading course direction and to the same extent as the spot prices of gold and silver. The economies of emerging markets countries also may be based on only how to calculate expected taxes on etf funds s day trading expectations few industries, making them more vulnerable to changes in local or global trade conditions and more sensitive to debt burdens or inflation rates or adverse news and events. As you get closer to retirement or whatever the money may be for you move into higher bond percentages. A quarterly revenue growth factor is only applied to the producers while a price momentum factor is only applied to explorers and developers. Some of it is risk tolerance for their clients, and some of it is simple wealth reallocation.

How Much Can You Make as a Day Trader?

The Adviser is responsible for the day-to-day administration, operation, and business affairs of the Trust. Tax Risks. Then you really will never recover. To the extent a Fund invests in equity securities of non-U. Table of Contents attacks or unintentional events. The risks associated with those investments are generally greater than those associated with investments in the securities of larger, more established companies. The Adviser anticipates that it may take approximately three business days i. Bull it is not. Past distributions are not indicative of future distributions. Table of Contents A Fund generally would be required to withhold a percentage of your distributions and trade bitcopin leverage nasdaq index day trading if you have not provided a taxpayer identification number generally your social security number or otherwise provide proof of an applicable exemption from backup withholding. Emphasis was appropriately placed on fees and taxes, too… as these headwinds will,lower the rates above even more as you pointed. The existence of a liquid trading market for certain securities may depend on. There can be no assurance that a Fund will continue to meet the requirements of the Exchange necessary how to trade using robinhood eaze medical marijuana delivery stock maintain the listing of Shares.

I believe it depends on what kind of drawdown you can live with. Who Is the Motley Fool? These events have adversely affected the values of securities issued by foreign governments and corporations domiciled in those countries and have negatively affected not only their cost of borrowing, but their ability to borrow in the future as well. Any payments made by the Adviser or its affiliates to an Intermediary may create the incentive for an Intermediary to encourage customers to buy Shares. MLPA is non-diversified which represents a heightened risk to investors. A Fund may also pay a special distribution at the end of the calendar year to comply with federal tax requirements. The expense example assumes that the Expense Limit will be terminated after its initial two year term. However, planning your retirement based on the numbers in this article would be ill advised. Great, great, great post! In some cases, this procedure could have a detrimental effect on the price or volume of the security so far as a Fund is concerned. Investopedia requires writers to use primary sources to support their work. A Fund will not deal with affiliates in principal transactions unless permitted by applicable SEC rules or regulations, or by SEC exemptive order. Day Trading Basics. Less developed markets are more likely to experience problems with the clearing and settling of trades, as well as the holding of securities by local banks, agents and depositories.

Why Day Trading Stocks Is Not the Way to Invest

Another issue is the fact that people over Aside from using ETF-based portfolios, investors concerned with minimizing taxes may also want to consider other strategies, such as tax loss harvesting and gaining exposure to asset classes with advantageous taxation. The ability to deduct capital losses may be limited. Time deposits are non-negotiable deposits maintained in banking institutions for specified periods of time at stated interest rates. Franklin Templeton offers a variety of equity and fixed-income ETFs to fit the investment requirements and risk tolerance of many investors. In addition, the Trust forex price action scalping pdf volman how to hack binary options pay to each such DTC Participant a fair and check coinbase transfer id best trading bitcoin platform amount as reimbursement for the expenses attendant to such transmittal, all subject to applicable statutory and regulatory forex t line world opening hours. Set forth below is a brief description of the procedures applicable to purchase and redemption of Creation Units. Broker dealers and other persons are cautioned that some activities on their part may, depending on the circumstances, result in their being deemed participants in a distribution in a manner which could render them statutory underwriters and subject them to the prospectus delivery and liability provisions of the Securities Act. Apple, and its valuation are the product of our modern not necessarily better economy. The Trust may impose a transaction fee for each creation or redemption. Active Trading Definition Active trading is the buying and selling of securities or other instruments with the intention of only holding the position for a short period of time.

Countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets. In some cases, this procedure could have a detrimental effect on the price or volume of the security so far as a Fund is concerned. These foreign obligations have become the subject of political debate and served as fuel for political parties of the opposition, which pressure the government not to make payments to foreign creditors, but instead to use these funds for, among other things, social programs. The Board reviews its structure on an annual basis. Taxes on Purchase and Redemption of Creation Units. Table of Contents Expand. Overall market risks may also affect the value of a Fund. After-tax returns are not relevant to investors who hold shares of the Fund through tax-deferred arrangements, such as k plans or individual retirement accounts. In connection with the increased use of technologies such as the Internet and the dependence on computer systems to perform necessary business functions, the Funds are susceptible to operational, information security, and related risks due to the possibility of cyber-attacks or other incidents. Table of Contents Board Committees. Mutual fund shares settle after the market has closed. Eastern time, each day the NYSE is open for trading. Dividend Definition A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Investopedia uses cookies to provide you with a great user experience. Investopedia uses cookies to provide you with a great user experience. Table of Contents their share prices tend to be more volatile. We live in the modern economy. Any thoughts on this? Industries to Invest In.

Geographic Concentration Risk. So, if you're thinking about investing, then don't buy into the day-trading hype. To the extent a Fund calculates its NAV based on fair value prices and the value of its Underlying Index is based on securities closing prices on local markets i. The 1-percent risk rule makes sense for many reasons, and you can benefit from understanding and using it as part of your trading strategy. The delivery of Creation Unit Aggregations so created will occur no later than the second 2nd Business Day following the day on which the purchase order is deemed received by the Distributor. Table of Contents shareholders. Many emerging market countries suffer from uncertainty and corruption in their legal frameworks. Sad to see others focusing on small details miss the point of the article. While in some cases this practice could have a detrimental effect upon the price or value of the security as far as a Fund are concerned, in other cases it could be beneficial to a Fund. As a non-principal investment strategy, the Fund may invest its remaining assets in other instruments in seeking performance that corresponds to the Junior Underlying Index, and to manage cash flows. Mutual fund transactions are made in cash, meaning that if an investor redeems shares, the manager may be forced to sell fund holdings in order to make cash available to deliver to the redeeming investor. The other. Stock prices of large capitalization companies may be less volatile than those of small- and mid-capitalization companies. Day trading is risky but potentially lucrative for those that achieve success. An AP who exchanges equity securities for Creation Units generally will recognize a gain or a loss. A custom order may be placed by an AP in the event that the Trust permits or requires the substitution of an amount of cash to be added to the Cash Component to replace any Deposit Security which may not be available in sufficient quantity for delivery or which may not be eligible for trading by such AP or the investor for which it is acting or any other relevant reason. The Independent Trustees also regularly meet outside the presence of management.

Why are these numbers so atrocious? Here's how such a trading strategy might play out:. Michael W. Other shareholder communications received by the Trust not directly addressed and sent to the Board will be reviewed and generally responded to by management. Annual rate stated as a percentage of the average daily net assets of a Fund. The btc trading signal thinkorswim two stocks on one chart for Mr. As a beneficial owner of shares, you are not entitled to receive physical delivery of stock certificates or to have shares registered in your name, and you are not considered a registered owner of shares. Instead, they are designed with a desired outcome in mind, such as lowering drawdowns during heightened periods of market volatility or pursuing stronger risk-adjusted returns versus a broader investment universe. The market prices of the shares will generally fluctuate in accordance with changes in NAV as well as the relative supply of and demand for shares on the NYSE Arca. In addition, there is a possibility that good podcasts to learn how to day trade how do bonds and stocks differ risks have not been adequately identified or prepared. Some of it is risk tolerance for their clients, and some of it is simple wealth reallocation. In addition, each Fund will bear the risk of loss of any cash collateral that it invests. MLPA is required to distribute income and capital gains which may be taxable. Severe economic or market disruptions or changes, or telephone or other communication failure may impede the ability to reach the Distributor or an Authorized Participant. In addition, the Fund will bear the risk of loss of any cash collateral that it invests.

What rate of return should you expect to earn on your investments?

Dividends may be declared and paid more frequently to improve Underlying Index tracking or to comply with the distribution requirements of the Internal Revenue Code ofas amended. Under current federal tax laws, any capital gain or loss realized upon redemption of Creation Units is generally treated as long-term capital gain or loss if the shares have been held for more than one year and as a short-term capital gain or loss if the shares have been held for one year or. The identity and number of Shares of the Deposit Securities or the amount of Deposit Cash, as applicable, required for a Fund Deposit for a Fund changes as rebalancing adjustments and corporate action events are reflected from time to time by the Adviser with a view to the investment objective of a Fund. Holding period is calculated starting on the day after the security's acquisition and continuing until the day of its disposal or sale, the holding period determines tax implications. Two main reasons: taxes and commissions. Past performance is not an indicator, nor a guarantee of future performance. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fxcm save charts make money binary options consistently over another investment. I know it depends on the market, but would like a hypothetical scenario. Portfolio turnover may vary from year to year, as well as within a year. In times of significant inflation or great economic uncertainty, gold, silver and other precious metals may outperform traditional investments such as bonds and stocks.

Best Accounts. Table of Contents Further, unlike debt securities, which typically have a stated principal amount payable at maturity whose value, however, will be subject to market fluctuations prior thereto , or preferred stocks, which typically have a liquidation preference and which may have stated optional or mandatory redemption provisions, common stocks have neither a fixed principal amount nor a maturity. A Fund may adjust these fees from time to time based on actual experience. Preferred stock must have a holding period of at least 90 days during the day period that begins 90 days before the stock's ex-dividend date. But if you do use the stock market, proceed cautiously with reasonable expectations. The Adviser is paid a monthly management fee at an annual rate stated as a percentage of the average daily net assets of each Fund of 0. However, these measures do not address every possible risk and may be inadequate for those risks that they are intended to address. As you get closer to retirement or whatever the money may be for you move into higher bond percentages. Please note that i any discussion of U. Any research and analysis contained in this website has been procured by Franklin Templeton Investments for its own purposes and is provided to you only incidentally. Sector Risk. Most financial pundits suggest that the older one gets, the shift from equities to bonds should increase. The Sub-Adviser may deal, trade and invest for its own account in the types of securities in which a Fund may invest. For purposes of the The Gold underlying index aims to track the performance of gold companies located in the U. This article was originally published on Oct. As with any investment, you should consider how your investment in Shares will be taxed. None of the information, whether in part or full, should be copied, reproduced or redistributed in any form nor should it be regarded as an offer or a solicitation of an offer for investment in countries outside the United Kingdom.

ETFs & Tax Efficiency

Such instruments may include money market instruments, including repurchase agreements or. Shareholder Communications to the Board. Total Annual Fund Operating Expenses. These considerations include favorable or unfavorable changes in interest rates, currency exchange rates, exchange control regulations and the costs that may be incurred in connection with conversions between various currencies. If you own these shares through a financial intermediary, contact the financial intermediary to request paper copies. NYSE Arca is not responsible for, nor has it participated in, the determination of the timing of, prices of, or quantities of the shares of the Funds to be issued, or in the determination or calculation of the equation by which the shares are redeemable. This Website is directed only at individuals resident within the United Kingdom and the information provided is not for distribution outside the United Kingdom. The Australian economy is heavily dependent on exports from the energy, agricultural and mining sectors. So, as I am reading, I am checking things off the list that I also have used in my thought process, historical rate of return keeping in mind no guarantee, but, hey, we have to make assumptions in planningCHeck, HRoR based un different relevant time periods, check, analyze data presented, in a logical way and…use a number you make up anyway! Preferred stock is subject to many of the risks associated with debt securities, including interest how to calculate expected taxes on etf funds s day trading expectations risk. However, these measures gap up trading strategy ishares msci kld 400 social etf ticker not address every possible risk and may be inadequate for those risks that they are intended to address. No compensation is payable by the Trust to the Distributor for such distribution services. Article Sources. Emerging markets also have different clearance and settlement procedures, and in certain of these emerging markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Thank you — CMF. High yielding stocks are often speculative, high risk investments. If you're interested, review the best stock brokers for day traders as the forex trades time frame forex open all script step is to choose the right broker for your needs. To put it mildly, day trading isn't just like gambling; it's like gambling with the deck stacked against you and the house skimming a good chunk of any profits right off the top. Additionally, is there a time limit, penalty.

Micro-cap stocks involve substantially greater risks of loss and price fluctuations because their earnings and revenues tend to be less predictable and some companies may be experiencing significant losses , and. Custody Risk. Investors may pay brokerage commissions on their purchases and sales of shares. Eastern Time. Shares can be bought and sold throughout the trading day like other publicly traded shares. Table of Contents Portfolio Turnover. Full Bio Follow Linkedin. The Distribution Agreement will continue for two years from its effective date and is renewable thereafter. First, I think we need some perspective. Instead, they are designed with a desired outcome in mind, such as lowering drawdowns during heightened periods of market volatility or pursuing stronger risk-adjusted returns versus a broader investment universe. Emerging markets also have different clearance and settlement procedures, and in certain of these emerging markets there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. The materials sector may also be affected by economic cycles, technical progress, labor relations, and government regulations. The gold and precious metals industry can be significantly affected by events relating to international political developments, the success of exploration projects, commodity prices and tax and government regulations. You recognise that adverse consequences may result for Fund shareholders if the Holdings Information is used for inappropriate trading purposes.

Which one should you use for planning? This is especially true as we may be entering a deflation period. Each of the following risks applies to each Fund unless otherwise noted. Here's how such a trading strategy might play out:. An investment in the Fund is subject to investment risk including the possible loss of the entire principal amount that you invest. This limit does not apply to securities issued or guaranteed by the U. Equity securities generally have trading signals performance comparison ticker for cocoa futures thinkorswim price volatility than fixed-income securities. The Trust may impose a transaction fee for each creation or redemption. The risk that a Fund may not match the performance of its Underlying Index may be heightened during times of increased market volatility or other unusual market conditions. Autotrading Definition Autotrading is a trading plan based on rsi for day trading low brokerage on intraday and sell orders that are automatically placed based on an underlying system or program. The profitability of companies in the metals and mining industry is related to, among other things, worldwide metal prices and extraction and production costs. Please accept the terms and conditions before continuing: Terms of Use Agreement.

Active Trading Definition Active trading is the buying and selling of securities or other instruments with the intention of only holding the position for a short period of time. Similarly, consider an ETF portfolio manager who is rebalancing a fund and needs to sell a position that has appreciated significantly since it was originally purchased. Investing Depositary Receipts are receipts, typically issued by a bank or trust issuer, which evidence ownership of underlying securities issued by a non-U. University of California, Berkeley. Among other things, the Canadian economy is heavily dependent on relationships with certain key trading partners, including the United States and China. Its Declaration of Trust currently permits the Trust to issue an unlimited number of shares of beneficial interest. Under current federal tax laws, any capital gain or loss realized upon redemption of Creation Units is generally treated as long-term capital gain or loss if the shares have been held for more than one year and as a short-term capital gain or loss if the shares have been held for one year or less. However, in other cases, it is possible that the ability to participate in volume transactions and to negotiate lower transaction costs will be beneficial to a Fund. Cyber Security.

Finally, the value of the currency of the country in which a Fund has invested could decline relative to the value of the U. Deposit Securities must be delivered to an account maintained at the applicable local sub-custodian s. Thomas W. Financial Highlights. The Adviser cannot predict whether the shares will trade below, at or above their NAV. Those three things are: income was paid on the investment in the form of bond interest or a stock dividend, there was a realized gain meaning investments were sold after they appreciated in value , or there was an unrealized gain investments that you are still holding went up in value. Fund Deposits for a Fund if it is eligible to utilize the Clearing Process made through the Clearing Process must be delivered through a Participating Party that has executed a Participant Agreement. Back to All Entries. Partner Links. An AP who exchanges equity securities for Creation Units generally will recognize a gain or a loss. Conclusion ETFs can be a useful tool for helping investors manage their taxes. What Is a Holding Period?

Junior companies include early stage mining companies that are in the exploration stage only or that hold properties that might not ultimately produce gold. Shareholders of a Fund may, subject to certain limitations, be entitled to claim a credit or a deduction with respect to foreign taxes if a Fund is eligible to and olymp trade training hari libur trading forex to pass through these taxes to. Past performance is not an indicator, nor a guarantee of future performance. This can result in capital gains, if the manager is forced to sell holdings at a higher price than their cost basis to raise the necessary cash. The profitability of companies in the metals and mining industry is related to, among other things, worldwide metal prices and extraction and production costs. Personal Finance. Upon written notice to the Distributor, such canceled order may be resubmitted the following Business Day using a Fund Deposit as newly constituted to reflect the then current Deposit Securities and Cash Component. Instead, they are designed with a desired outcome in mind, such as lowering drawdowns during heightened periods of market volatility or pursuing stronger risk-adjusted returns versus a broader investment universe. The method also applies to all markets. The after-tax returns presented in the table below are calculated using highest historical individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Intraday stocks list bse forex loss or gain article was originally published on Oct. The market prices of Shares will fluctuate in accordance with changes in NAV and supply and demand on the Exchange. Great, great, great post!

Chart is author's own. NYSE Arca makes no representation or warranty, express or implied, to the owners of the shares of the Funds. Active Trading Definition Active trading is the buying and selling of securities or other instruments with the intention of only holding the position for a short period of time. In addition, investors can use ETFs for tax loss harvesting and to gain exposure to asset classes with favorable tax treatment. The exploration and development of mineral deposits involve significant financial risks over a significant period of time which even a combination of careful evaluation, experience and knowledge may not eliminate. A Creation Unit of a Fund generally consists of 50, Shares, though this may change from time to time. Now, I'm not necessarily saying you should put all of your money in an index fund and forget about it. Please accept the terms and conditions before continuing: Terms of Use Agreement. We adhere to a strict Privacy Policy governing the handling of your information. Table of Contents How to Buy Shares. Table of Contents Independent Trustees. The Distributor as defined below relies on the principal underwriters exception under Rule 17j-1 c 3 , specifically where the Distributor is not affiliated with the Trust or the Adviser, and no officer, director, or general partner of the Distributor serves as an officer, director, or general partner of the Trust or the Adviser. Table of Contents The Sub-Adviser is responsible, subject to oversight by the Board, for placing orders on behalf of the Funds for the purchase or sale of portfolio securities. Changes in the financial condition or credit rating of an issuer of those securities may cause the value of the securities to decline.