Listed resource-company shares
Shares can provide exposure to businesses involved in production, processing or related services. You own part of a company; you do not own the underlying commodity. Company decisions and finances can influence results independently of commodity prices.
Exchange-traded products and funds
A product may hold physical assets, contracts or company shares, depending on its structure. Read the prospectus to establish what it owns, how it seeks exposure and what it charges. An ETF, a commodity trust and an exchange-traded note are not interchangeable; a note also introduces the issuer's credit exposure.
Futures and options
These are contracts with defined terms and expirations. They require an understanding of leverage, settlement and ongoing account obligations. Ask whether an approved futures intermediary is involved and which entity would carry the account.
Direct energy projects and private investments
An interest in a project or private issuer is separate from an exchange-traded position. Do not assume it can be sold readily or that project revenue will be distributed to investors. Any specific offering requires its own documentation, eligibility review and explanation of risks and expenses.
Physical ownership
Physical holdings require an explanation of ownership, custody, storage, delivery and sale arrangements. This guide does not imply that Preferred Client Group operates a physical-commodity dealing or storage service.