Opening An Account  continued

   Finally, we complete for your signature an application for a discount brokerage account with an institutional brokerage firm that provides custody of our accounts and conducts trading orders from SCM Associates. The account is established in your name and tax identification number. You own the account, and the institutional broker allows only you to withdraw money or securities from the account. 
If your money is invested with another broker or a mutual fund(s), you can authorize our custodian/institutional broker to request the account to be transferred electronically with no income tax consequences. If you have a check for deposit, it should be made payable to the custodian and sent with the application. Initial cash is deposited into an interest-bearing money market account from which SCM purchases securities. The money market account is a permanent repository for any dividends paid on the securities held in your account.