CUSTOMER RELATIONSHIP SUMMARY

February 2024

Form CRS (Customer Relationship Summary) Stock Securities LLC ("Stock") is registered with the U.S. Securities and Exchange Commission (SEC) as a broker-dealer and is a member of the U.S. Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). Stock does not provide investment advisory services.  Brokerage and investment advisory services and fees differ in nature, and it is important for you to understand the differences.  Free and simple tools are available to you to research firms such as Stock at https://www.lnvestor.gov/CRS, which also provides information about individual broker-dealers, investment advisers, and the process of investing.

WHAT INVESTMENT SERVICES AND ADVICE CAN STOCK SECURITIES PROVIDE TO ME?

Stock has significant limitations. The firm limits its provision of investment services to the solicitation of private placements (e.g., stock in private companies, limited partnership interests, units or shares of private equity, hedge, and special purpose investment funds).

Brokerage Services: A traditional broker-dealer executes specific transactions on your behalf and gets paid on a per transaction basis.  Stock and its financial professionals can offer and sell private placements or provide you with investment opportunity introductions and/or due diligence review services. Stock interacts only with accredited investors, qualified institutional buyers, and qualified purchasers. By comparison, other firms typically offer a wider range of investment opportunities and at a lower cost.

Stock does not open client accounts, hold client funds or securities, design or otherwise offer investment strategies.  Stock may present investment opportunities consistent with your investor profile and interest as presented to Stock.  Stock may present investment opportunities and supporting documentation provided by a security issuer to you, but Stock does not make any endorsements or representations as to the accuracy, completeness or validity of the documentation . In addition, Stock does not provide investment advice or make investment recommendations. However, in presenting investment opportunities to you, Stock is construed to be providing an investment recommendation.  Notwithstanding Stock’s presentation of an investment opportunity, each Investor must make the ultimate decision regarding its, his or her selection of an investment.

As an Accredited Investor, you should understand the risks and rewards associated with any investments made through or arranged by Stock.  However, and if in doubt, Stock encourages you to consult with an independent advisor or other source.

For additional information, please see Stock’s website at http://www.StockSecurities.com and/or Stock’s new client onboarding package upon request.

Conversation Starter: Ask your financial professional –

  • Help me understand how these fees and costs might affect my investments.  If give you $100,000 to invest, how much will go to fees and costs, and how much will be invested for me?

WHAT ARE YOUR LEGAL OBLIGATIONS TO ME WHEN PROVIDING RECOMMENDATION ONS? HOW DOES YOUR FIRM MAKE MONEY AND WHAT CONFLICTS OF INTEREST DO THEY HAVE?

When we present you with an investment opportunity which is construed as a recommendation, we must act in your best interest and not put our interest ahead of yours. At the same time, the way Stock makes money creates inherent conflicts with your interests. You should understand and ask us about these conflicts because they may affect the recommendations we provide to you. Here are some examples to help you understand what this means:

Limited Investment Offerings: Our brokerage services and recommendations cover a limited selection of investments. Many other firms may provide a wider range of investment and service choices for you to consider.

Transaction Fees: Stock typically makes money when it is paid by the Securities Issuer on the investment you make. In some cases, Stock's commission is a percentage of the total amount of the investment it sells. In other cases, Stock’s commission is a percentage of the fees earned by third parties who manage the funds in which you invest. Stock only gets paid when you complete a transaction. It therefore may have an incentive to encourage you to make larger investments and invest more frequently.

Private Securities Transactions:  Stock permits its representatives and their family members to conduct certain transactions and investment activities on their own behalf, and these activities are subject to additional securities laws, rules, and regulations.  Your Stock financial professional may, therefore, have an incentive to introduce or recommend investments to you in which he or she is also invested or otherwise has a financial or other kind of interest.

Other Compensation: Stock does not have sales contests or pay performance-based bonuses to its f financial professionals Other than the commissions and other fees paid to us directly or indirectly, Stock may receive additional compensation or benefits which are required to be fully disclosed to you. Stock does not regularly offer proprietary investment products but may sponsor or arrange private placement investment opportunities in which Stock financial professionals are directors, officers, organizers and/or investors in the Securities Issuer.  With respect to such investment opportunities, there may be other products or services in the market, available to or provided by Stock or other providers that are similar and less costly. To the extent that such opportunities are offered by or known to Stock, the firm will advise you of their existence and potential availability to you.

For additional information, please see investment offering documentation.

Conversation Starter: Ask your financial professional –

  • How might your conflicts of interest affect me, and how will you address them?

HOW DOES YOUR FINANCIAL PROFESSIONAL MAKE MONEY?

Stock receives compensation from the Security Issuer if there is a successful transaction. Compensation is usually calculated as a percentage of your investment amount. Therefore, Stock gets paid from the Security Issuer only after your investment has been made with the Security Issuer. In some instances, Stock may also receive business advisory, retainer or other fees including equity-linked compensation from the Security Issuer whether you invest or not. These fees are not tied to the size of your investment. Your financial professional receives a percentage of the fee revenue he or she generates for Stock. Therefore, your representative has an incentive to encourage you to invest in, buy and sell securities involving the Securities Issuer she or she has presented to you.  

HOW MIGHT YOUR FINANCIAL PROFESSIONAL HAVE A CONFLICT?

Stock frequently presents investment opportunities in which its financial professionals may be a director, officer and/or investor in a Securities Issuer directly or indirectly including through his or her affiliated party. Under such circumstances, Stock is required to disclose to you the nature of its financial professional’s relationship with the Securities Issuer including any compensation arrangements and the nature of the appearance of or actual conflict of interest.  You should carefully consider any such conflicts of interest in weighing the merits of making any particular investment and, if in doubt, seek the advice of an independent advisor.

DOES YOUR FIRM OR YOUR REPRESENTATIVES HAVE LEGAL OR DISCIPLINARY HISTORY?

Yes. All disclosures related to the Firm and/or its representative can be reviewed on BrokerCheck found at https://finra.org or visit https://www.investor.gov/CRS for a free search tool to research Stock and its representatives.

Conversation Starter: Ask your financial professional –

  • As a financial professional, do you have any disciplinary history?  For what type of conduct?

ADDITIONAL INFORMATION

You can find additional information about the services we provide, fees you pay, and conflicts of interest in your new client package. Your representative will provide you with a copy. You may also obtain a copy at https://www.stocksecurities.com.

You may call (609) 924-6710 to request up-to-date information and request a copy of the Stock's client relationship summary.

Conversation Starter: Ask your financial professional –

  • Who is my primary contact person?

  • Is he or she a representative of an investment adviser or a broker-dealer?

  • Who can I talk to if I have concerns about how this person is treating me?