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Multi-Firm Alternatives* | Traditional Purchase* | |
|---|---|---|---|
| Investor Evaluation | Online | Online | Offline |
Compliance |
Online | Online | Offline |
| Subscribe | Online | Online | Offline |
| Funding | Check, wire, EFT or ACAT transfer | Check, wire or EFT | Check or wire |
| Closing | Automated exchange of shares and cash | Bank escrow and transfer agent | Bank escrow and transfer agent |
| Custody | Online brokerage account (book entry and street name) | Transfer agent | Issuer certificates |
| Brokerage Account Features | Online private & public securities (confirmations, statements, etc.) | Private securities are not held in an account | Private securities are not held in an account |
| Trading & Transfers | In brokerage account | Transfer agent processes transfers | Issuer processes transfers |
| Distributions (capital, interest, dividends) |
Deposited directly into account | Transfer agent mails check(s) | Issuer mails check(s) |
| Voting & Corporate Actions | In brokerage account | Transfer agent mails proxies and materials | Issuer mails proxies and materials |
| IRAs | In brokerage account | Separate IRA custodian and pricing | Separate IRA custodian and pricing |
| Taxes | Online 1099s | Transfer agent may provide | Issuer may provide |
| Investor Protection | SIPC coverage on account** FDIC insured cash sweep program | No SIPC coverage; FDIC insured bank escrow | No SIPC coverage; FDIC insured bank escrow |
| Offer Website | Hosted by Folio or API | Hosted or API | Not widely available |
| Offer Distribution | Online Folio Investing & RIA customers; B/D syndicate(s) | Online B/D syndicates | Offline B/D syndicates |
This communication is for information purposes only and should not be regarded as a recommendation of or an offer to sell or as a solicitation of an offer to buy, any financial product. Financial products listed on our sites are only available to residents in the states where those products are registered. Offerings of private securities on our sites are only suitable for investors who are familiar with and willing to accept the high risk associated with private investments. Securities sold through private placements are not publicly traded and are intended for investors who do not have a need for a liquid investment. There can be no assurance any private security valuation is accurate, reflective of future sales prices, or in agreement with any market or industry valuations. Additionally, investors may receive restricted securities that may be subject to holding period requirements. A well-diversified portfolio can include different types of investments. How you invest is based on your tolerance for risk, the length of time you have to reach your financial goals, your specific interests and needs and other factors. Companies seeking private placement investments are often in earlier stages of development and have not yet been fully tested in the public marketplace. Investing in private placements requires high risk tolerance, low liquidity requirements and long-term commitment. Investors must be able to afford to lose their entire investment.
© 2020 by Folio Financial, Inc. All rights reserved. Brokerage, custody and clearing services are offered by Folio Investments, Inc., a registered broker-dealer and member FINRA/SIPC. Folios can be managed by an investment advisor or unmanaged and are not registered investment companies.