Accounts & Services
Standard Firm Disclosure
BB&T Capital Markets is a division of BB&T Securities, LLC, member FINRA/SIPC. BB&T Securities, LLC is a wholly-owned nonbank subsidiary of BB&T Corporation. Securities and insurance products or annuities sold, offered or recommended by BB&T Scott & Stringfellow are not a deposit, not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may lose value.
Branch Banking & Trust Company (BB&T)
Only deposit products are FDIC insured. Deposit products are offered through Branch Banking & Trust Company. Member FDIC. Loans are subject to credit approval. Loan (or credit) products are offered through Branch Banking and Trust Company, an Equal Housing Lender.
Information From Other Sources
The information contained herein has been obtained from sources we believe to be reliable and accurate, but we do not guarantee its accuracy or completeness. This material is neither an offer to sell nor a solicitation of an offer to buy any of these securities.
Tax and Legal Advice
BB&T Capital Markets and its representatives do not provide tax or legal advice. You should consult your individual tax or legal professional before taking any action that may have tax or legal consequences.
Extended Trading Hours
The following risks are assumed when trading during extended trading hours:
Risk of Lower Liquidity: Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be lower liquidity in extended hours trading as compared to regular market hours. As a result, your order may be only partially executed, or not at all.
Risk of Higher Volatility: Volatility refers to the changes in price that securities undergo when trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended hours trading than you would during regular market hours.
Risk of Changing Prices: The prices of securities traded in extended hours trading may not reflect the prices either at the end of regular market hours, or upon the opening the next morning. As a result, you may receive an inferior price in extended hours trading than you would during regular market hours.
Risk of Unlinked Markets: Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours trading system may not reflect the prices in other concurrently operating extended hours trading systems dealing with the same securities. Accordingly, you may receive an inferior price in an extended hours trading system than you would in another extended hours trading system.
Risk of New Announcements: Normally, issuers make news announcements that may affect the price of their securities after regular market hours. Similarly, important financial information is frequently announced outside of regular market hours. In extended hours trading, these announcements may occur during trading, and if combined with lower liquidity and higher volatility, may cause an exaggerated and unsustainable effect on the price of the security.
Risk of Wider Spreads: The spread refers to the difference in price between what you can buy a security for and what you can sell it for. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.
To receive price charts on the companies mentioned in this report, please contact BB&T Capital Markets Research at 800-552-7757 x8785.
BB&T Capital Markets Ratings System:
The BB&T Capital Markets Equity Research Department Stock Rating System consists of three separate ratings. The appropriate rating is determined by a stock’s estimated 12-month total return potential, which consists of the percentage price change to the 12-month price target and the current yield on anticipated dividends. A 12-month price target is the analyst’s best estimate of the market price of the stock in 12 months. A 12-month price target is highly subjective and the result of numerous assumptions, including company, industry, and market fundamentals, both on an absolute and relative basis, as well as investor sentiment, which can be highly volatile.
The definition of each rating is as follows:
Buy (1): estimated total return potential greater than or equal to 10%, Hold (2): estimated total return potential greater than or equal to 0% and less than 10%, Underweight (3): estimated total return potential less than 0%
B: Buy H: Hold UW: Underweight NR: Not Rated NA: Not Applicable NM: Not Meaningful SP: Suspended
Stocks rated Buy (1) are required to have a published 12-month price target, while it is not required on stocks rated Hold (2) and Underweight (3).
Additional Information Available Upon Request
For valuation methodology and related risk factors on Buy (1)–rated stocks, please refer to the body text of this report or to individual reports on any covered companies referenced in this report.
The analyst(s) principally responsible for preparation of this report received compensation that is based upon many factors, including the firm’s overall investment banking revenue.
The information and statistics in this report have been obtained from sources we believe are reliable but we do not warrant their accuracy or completeness. We do not undertake to advise the reader as to changes in figures or our views. This is not a solicitation of an order to buy or sell any securities.
BB&T Capital Markets, a division of BB&T Securities, LLC, member FINRA/SIPC, a wholly owned nonbank subsidiary of BB&T Corporation. The securities sold, offered or recommended are not a deposit, not FDIC insured, not guaranteed by a bank, not guaranteed by any federal government agency and may go down in value.
The opinions expressed are those of the analyst(s) and not those of BB&T Corporation or its executives.
USA Patriot Act Know Your Customer
Important Information You Need to Know About Opening An Account
In accordance with USA Patriot Act, federal law requires Scott & Stringfellow to obtain, verify and record specific information on customers when opening a new account.
Types of Information You Will Need to Provide
When you open an account, Scott & Stringfellow is required to collect information such as the following:
· A form of government issued identification:
(a) Valid state photo driver’s license
(b) Valid military photo ID
(c) Valid military dependents photo ID
(d) US photo passport ID
· Date of birth
· Address which shall be:
(a) A residential or business street address
(b) For an individual who does not have a residential or business street address, an Army
Post Office (“APO”) or Fleet Post Office box number, if applicable, or the residential or
business street address of next of kin or of another contact individual, and
· Identification number:
(a) For a U.S. person, a taxpayer identification number (customer must currently have this number assigned; proof of taxpayer application is not sufficient)
(b) For a non-U.S. person, one or more of the following: a taxpayer identification number;
passport number and country of issuance; alien identification card number, or number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard. NOTE: Foreign Driver
Licenses are not permitted as ID, and the firm prohibits the opening off accounts for
Non-Natural Entity Account(s)
· Principal place of business (local office or other physical location)
· Employer tax identification number (customer must currently have this number assigned; proof of
taxpayer application is not sufficient).
· Entity Formation documents (i.e., certified Articles of Incorporation, a government-issued
business license, a partnership agreement, a trust document, estate paperwork, etc.)
U.S. Department of the Treasury, Securities and Exchange Commission and Financial Industry Regulatory Authority (FINRA) rules already require you to provide most of this information. These rules also require you to provide additional information, such as your marital status, number of dependents, tax bracket, time horizon, investment experience and objectives, and risk tolerance.
If Your Identity Cannot Be Verified
We may not be able to open an account or carry out transactions for you. If an account has already been opened for you, it may have to be closed.
We thank you for your patience and hope that you will support the financial industry's efforts to deny terrorists and money launderers access to America's financial system.
This message is intended only for the addressee. BB&T Capital Markets, a division of BB&T Securities, LLC, member FINRA/SIPC, a wholly-owned nonbank subsidiary of BB&T Corporation. The securities sold, offered or recommended are not a deposit, not FDIC insured, not guaranteed by a bank, not guaranteed by any federal government agency and may go down in value. Please be aware that since the confidentiality of Internet email cannot be guaranteed, do not include private or confidential information such as passwords, account numbers, social security numbers, etc., in emails to us. Additionally, instructions having financial consequences such as trade orders, funds transfer, etc., should not be included in your email communications to us as we cannot act on such instructions received by email.
If you no longer wish to receive commercial messages from our organization through electronic means, please email the following address (donotemailcommercial@BBandTCM.com) with the word "stop" in the subject line.
The information in this transmission may contain proprietary and non-public information of BB&T or its affiliates and may be subject to protection under the law. The message is intended for the sole use of the individual or entity to which it is addressed. If you are not the intended recipient, you are notified that any use, distribution or copying of the message is strictly prohibited. If you received this message in error, please delete the material from your system without reading the content and notify the sender immediately of the inadvertent transmission.
In today's environment, a disaster can occur anytime and significantly affect our Firm's ability to conduct business. As such, BB&T Securities, LLC ("the firm") maintains a Business Continuity Plan that documents the procedures the firm and its employees will follow when responding to a wide variety of events. To best respond to any situation, the firm has instituted recovery planning that is both flexible and agile enough to respond to even the worst-case scenarios.
BB&T Securities, LLC has organized a Business Recovery Management Team (BRMT) that manages the recovery of critical business functions in a timely manner following any significant business disruption. If the firm, a self-regulatory organization, or an agency of the federal government declares a Disaster Event, the BRMT will assemble and operate from a Crisis Command Center. The firm has the ability to relocate essential personnel to back-up facilities or to a secondary branch office from which Financial Advisors or other employees can conduct business.
We recognize that technology and communications are vital to client service. As such, BB&T Securities has built and maintains a back-up data and communications center that is more than 300 miles from the primary data center. This back-up facility contains redundant systems and communication links to ensure prompt access to client data. Our goal is to help ensure clients’ access to their accounts despite any disruptions, realizing that there may be circumstances beyond our control. We are committed to constantly improving our resiliency and will continue to strive toward achieving our goal.
The firm has developed this Business Continuity Plan and the procedures within to help customers achieve prompt access to their securities and funds following most business disruptions. With regard to client assets, nearly all physical securities are held in central depositories or custodian banks. This allows the firm and its clients a higher level of liquidity and security of their assets in any type of business disruption.
The following are some very important communication guidelines that you can use in the event our firm is operating under emergency conditions:
· Primary contact: Your Financial Advisor
· Secondary Contact: Information regarding the status of BB&T Securities, LLC can be found on the firm’s website, or www.bbtsecurities.com or www.bbtscottstringfellow.com
· Tertiary Contact: The Firm has the ability to establish a Client Crisis Hotline to be utilized during emergency situations. This number may be posted here during an actual emergency
An emergency or disaster may be confined to a specific geographic area. We have coordinated amongst our branch offices to prepare for the emergency need, should one branch become unavailable, that another branch and their respective Financial Advisors can assume their responsibilities until the affected branch is able to resume normal operations. Contact information for each branch is available on our website.
The firm values its clients and is committed to servicing their financial needs throughout a disruption. The firm is equally committed to remaining in compliance with all federal and self-regulatory organization rules and regulations.
BB&T Securities has taken significant steps to strengthen its Business Continuity Plans; however it cannot guarantee that all systems will be immediately available following a significant business disruption. Nonetheless, our clients can be assured employees of the firm are committed to resuming all business operations as quickly as possible and continuing our service in a professional and courteous manner.
The firm will update the Business Continuity Plan as circumstances dictate.
Auction Rate Securities
Overview of Auction Rate Securities
For a detailed discussion of the features and risks over auction rate securities, please review the BB&T Scott & Stringfellow/BB&T Capital Markets “ARS Policies and Procedures” (include link)
Auction rate securities (also called on occasion: “Auction Market Preferred Stock”, “Variable Rate Preferred Securities”, or “Periodic Auction Rate Securities”) are municipal bonds, corporate bonds, and preferred stocks with interest rates or dividend yields that are periodically re-set through auctions, typically every seven, fourteen, twenty-eight, or thirty-five days. Typical minimum investment in such investment vehicles is $25,000. Issuers of these securities can include, but are not limited to: closed-end funds, corporations, and municipal authorities.
Auction rate securities have generally been issued as either debt or preferred stock, designed to serve as money market-like instruments. They are usually issued with stated intermediate to long-term maturities or in perpetuity; however they are priced and traded as short-term instruments given their interest or dividend re-set feature. Generally, these instruments are callable at par on the auction date and/or any interest payment date at the option of the issuer. Interest is paid in the current period based on the interest rate determined in the prior auction period.
Auction rate securities are auctioned at par and the return on the investment to the investor and the cost of financing to the issuer between auction dates is determined by the interest rate or dividend yield set through the auction. The interest rate or dividend yield is set through what is commonly referred to as a “Dutch” auction in which bids with successively higher rates are accepted until all of the securities in the auction are sold. The final rate that sells all of the securities is called the “clearing rate” (lowest rate bid sufficient to sell all securities within the auction), which applies to all of the securities in the auction until the next auction.
BB&T Scott & Stringfellow/BB&T Capital Markets Practices and Procedures
Please review the BB&T Scott & Stringfellow/BB&T Capital Markets “ARS Policies and Procedures” (include link)
It is also important for current or potential customers BB&T S&S/BBTCM to comprehend the various risk factors involved if currently participating or decide in the future to participate in the auction rate securities market. It is important for the reader to fully understand the relevant facts regarding the nuances of the auction rate market before participating.
Current or potential customers should read these policies and procedures in its entirety. Any questions about the content of this document should be directed to your BB&T S&S/BBTCM representative or local BB&T S&S/BBTCM office for more information. If you have invested in auction rate securities through BB&T Scott & Stringfellow/BB&T Capital Markets you may request a copy of these policies and procedures by contacting your representative or local office.
Products are subject to availability, prior sale and/or change in price. The information contained herein has been obtained from sources we believe to be reliable but does not purport to be a complete statement of the available data. Any listing is published for informational purposes only and is not to be construed as a solicitation of an offer to buy or sell any security in any state where such a sale would be illegal. Investing in bonds involves a significant amount of risk. Bonds are subject to market and interest risk; values will decline as interest rates rise. Bonds may not be suitable for all investors and you should consider specific risks such as credit risk, default risk and volatility prior to investing. Yields could be higher or lower depending on par amount, are inclusive of commission and represent yield-to-worst, which may reflect yield-to-maturity, yield-to-worst-call, or yield-to-a-mandatory-put as indicated. Municipal bonds may be subject to optional redemption, sinking fund redemption and mandatory redemption prior to maturity. Municipal securities may also be subject to federal alternative minimum tax (AMT). Scott & Stringfellow and its representatives do not provide tax or legal advice. You should consult your individual tax or legal professional before taking any action that may have tax or legal consequences. Refer to a bond’s Official Statement for more specific information.