Stocks & exchange traded products (ETPs)

At Ameriprise Financial, you can trade stocks and ETPs listed on all the major U.S. exchanges (NYSE, AMEX, NASDAQ) and over-the-counter (OTC) securities.

How you trade is up to you:

• Through your Ameriprise financial advisor
• Online through your brokerage account
• Over the phone via our automated phone system
• Via a registered service representative through our client service center

Costs associated with each option may vary.

Stocks

Stocks are a type of security that give stockholders a share of ownership in a company. Investors buy stocks for various reasons, including:

• The potential for capital appreciation, which occurs when a stock rises in price
• The potential for dividend payments, which come when the company distributes some of its earnings to stockholders

Exchange Traded Products (ETPs)

ETPs include various investment structures that track an underlying benchmark, index or portfolio of securities or other financial products. ETPs trade on exchanges, where shares can be purchased, similar to stocks their prices can fluctuate throughout the day. There are three main types of ETPs available at Ameriprise:

Exchange Traded Funds (ETFs)

Like mutual funds, ETFs are securities that allow investors to pool their money in a fund that invests in assets such as stocks, bonds and commodities. However, ETFs have key differences compared to mutual funds:

• Shares trade intra-day on a national exchange at market prices that may vary from net asset value (NAV) instead of being issued and redeemed at the end of the day at the net asset value
• Most ETFs are index-based which seek to track a securities index. Index-based ETFs may often have lower expense ratios

ETF & Mutual Fund Model Data

Exchange Traded Notes (ETNs)

ETNs are a senior, unsecured, unsubordinated debt security issued by an underwriting bank which, like other debt securities, has a maturity date and is backed only by the credit of the issuer. ETNs trade on exchanges and promise a return linked to a market index or other benchmark. The return on an ETN is based on:

• Price changes, if sold prior to maturity
• The payment, if any, if the ETN is held to maturity or otherwise redeemed by the issuer

Like other ETPs, the market price of an ETN can differ from its indicative value, sometimes substantially.

Closed-End Funds (CEFs)

CEFs are a pooled investment vehicle with a manger overseeing the portfolio. CEFs raise a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on the exchange.

• Like open end mutual funds, CEFs are actively managed
• Share prices may vary in value from NAV which can result in investors purchasing shares at a premium/discount

SEC Rule 606 Order Routing Report

Ameriprise Financial Services LLC. (AFS) does not route orders. Order routing is exclusively handled by American Enterprise Investment Services Inc. (AEIS), the affiliated clearing firm for AFS. AFS does not receive payment for order flow from AEIS. AEIS does not route orders for other broker-dealers.

For information regarding AEIS order routing activity, view the SEC Rule 606 Order Routing Report.

Take the next step

To find out more about including stocks and ETPs in your investment strategy, contact your Ameriprise financial advisor or locate an advisor near you.