How does Stock Margin affect my taxes?

Since you own the actual stocks, standard tax rules for stock ownership apply, including treatment of dividends and capital gains. There is no derivative or synthetic tax treatment.

The stocks you purchase on margin serve as collateral for the loan provided by the broker. In some cases:

• a portion of any dividends may be received as a manufactured dividend, which could be taxed differently
• you may not receive voting rights for all stocks held

We recommend consulting a local tax advisor to understand how Stock Margin may impact your individual tax situation.