Auction Rate Securities Disclosures
Our Practices and Procedures for Auction Rate Securities
Understanding the typical terms and descriptions of the auction practices we use is crucial when you invest in auction rate securities through A.G. Edwards, but because each security is different, it's also important to review the offering documents of the specific securities you invest in.
The market for auction-rate securities (ARS) has recently experienced turmoil. If you own auction-rate securities (ARS), they continue to be priced at par. Based on market conditions, these securities may be valued more or less than par. You can tell whether you own auction-rate securities (ARS) by the security description on your account statement that will reflect references to "Auction" or "Var" and "nxt auc" followed by a date (i.e., next auction date). For further information about auction-rate securities (ARS), read our special report, Auction Rate Securities: Overview, Features and Risks (PDF). For information on auction practices see our special report, "Auction Practices and Procedures for Auction-Rate Securities" (PDF).