A Risk Letter Helps Protect Investors
          
          
               Investment firms that are members of the New York
          Stock Exchange (NYSE) are governed by many stringent
          regulations that may not apply to other investment
          firms.
               For example, NYSE rule 405, the "know your
          customer" rule, requires registered representatives of
          NYSE-member firms to obtain pertinent facts about every
          customer's security holdings, financial condition and
          investment objectives.  This information helps identify
          potential investments that may or may not be compatible
          with the customer's needs.
               If an investor wishes to purchase a security that
          the investment representative believes is incompatible
          with the customer's stated objectives and risk
          tolerance, the investment representative is likely to
          ask the investor to read and acknowledge a "risk
          letter" prior to purchase.
               Risk letters give investors an opportunity to
          seriously consider their positions before making
          investments.  A risk letter is typically a standard
          form that the investment representative and client
          complete together.  The form includes the amount and
          description of the purchase and a brief statement
          explaining why the customer wants to buy the security. 
          If the security is sold by prospectus only, the
          investor also must acknowledge in the risk letter that
          he or she has received the prospectus and has been
          informed of any fee, commission or surrender charge
          that may apply to the transaction.
               The risk letter also emphasizes potential risks,
          such as market fluctuation or overconcentration in one
          industry or sector.  If, after reading the letter, the
          investor still wants to make the purchase, he or she
          and the investment representative sign the risk letter,
          and it becomes part of the investor's file.
               Many investors question the need to sign risk
          letters when they can make other investments without
          question.  Risk letters are required by most brokerages
          whenever a proposed investment is not consistent with
          the customer's stated objectives or with his or her
          normal investments.  
               Risk letters are designed to ensure customers
          understand the risk of certain investments and are
          willing to accept that risk before an investment is
          made.