How is account value, cash value, and buying power calculated?

The buying power for non-marginable securities is the money available to an investor to buy securities that are not marginable. The Federal Reserve Board regulates whether or not a security is considered marginable. A general rule used by brokerages is to not allow penny stocks, over-the-counter Bulletin Board (OTCBB) securities or initial public offerings (IPOs) to be purchased on margin. Additionally, ShareBuilder may chose to designate some securities non-marginable based of its criteria which evaluates perceived risk. Securities that are determined to be non-marginable have an initial rate and maintenance rate of 100%.

Important: Buying securities on margin is not appropriate for all investors. Before investing on margin, please read the Margin Account Agreement for important risk disclosure information, and see ShareBuilder's margin interest rates.