Definitions of Principal Terms used in the Target Market and Strategy Table

Knowledge and Experience

Basic Investor: Investors who have limited knowledge and experience in relevant product categories.

Informed Investor: Investors who have good knowledge and experience in relevant product categories.

Advanced Investor: Investors who have extensive knowledge and experience in relevant product categories.

Risk tolerance

Conservative: Investors who tolerate no loss or only a moderate loss in their investment or initial amount.

Balanced: Investors who tolerate a loss of the entire investment or initial amount. Investment strategies.

Risk-oriented/speculative: Investors who tolerate losses exceeding their investment or initial amount.

Intended Purpose of Trading

Growth: to increase the principal value of your investments over time rather than seek current income. Investor assumes higher degree of risk.

Hedging: To take positions in a product to hedge or offset the risk in another product.

Preservation of Capital and Income Generation: To seek maximum safety and stability for your principal by focusing on securities and investments that carry a low degree of risk and/or to generate dividend, interest or other income instead of or in addition to long-term capital appreciation.

Profits from Active Trading and Speculation: to increase the principal value of your investments by assuming substantially higher risk to your investment capital and/or to substantially increase the principal value of your investments by assuming substantially higher risk to your investment capital.