Equities, Mutual Funds & Options 

This page will provide you with helpful information about equities, mutual funds and options and how to set up your accounts to trade them at Schwab. Click on a link below to view a specific article.

How to update Dividend and Capital Gains elections
The Reinvest tab on Schwab Advisor Center® is a fully digital system to make reinvestment elections for Dividends and Capital Gains.

Introduction to equity trading
Schwab Advisor Services™ provides you with an open architecture trading platform with various channels you can use to submit trades. These channels include Schwab Advisor Center®, third-party software firms, or by phone.

Introduction to mutual fund trading
The Web Trading platform is generally the most efficient way to place mutual fund trade orders, but alternative methods are available. Contact the Mutual Fund Trading Desk at 800-367-5198 option 2 with any questions.

How to trade equities, mutual funds, and options through the Web Trading platform
You can perform most equity, mutual fund, and option trades efficiently on the Schwab Advisor Center® Web Trading platform. Schwab also offers Prime Broker and Trade Away services if you want to trade equities through other Broker-dealers. Prime Broker and Trade Away trades can be allocated on the Web Trading platform.

Introduction to payments in lieu of dividends (PILs)
Payments in lieu of dividends are "substitute payments", made by Schwab, to make up for dividends your client may have missed. These payments are treated as ordinary income and are not eligible for the lower "qualified" dividend rate because, they are issued in substitution of an "actual" dividend from the borrowing corporation or transfer agent.

Introduction to Automatic Investment Plan (AIP) for Mutual Funds
Automatic Investment Plan (AIP) for Mutual Funds is a fully digital solution, allowing you to create and make changes on the Schwab Advisor Center® website to support mutual fund investments and redemptions with new frequencies.

How to trade restricted and control securities
Restricted securities and control securities belong to a special class of securities that is governed by U.S. Securities and Exchange Commission (SEC) Rule 144. This rule allows public resale of restricted and control securities if certain conditions are met. You can trade restricted and control securities using paper forms.

How to participate in public offerings
Schwab has entered into an agreement with Credit Suisse to provide eligible clients with access to initial public offerings (IPOs) and secondary public offerings (SPOs). When Schwab receives an allocation for public offerings, advisors working with Schwab Advisor Services™ can purchase shares on behalf of their clients.

How to enroll clients in securities lending fully paid (SLFP)
SLFP is a program that allows clients to lend fully paid securities for monthly loan income. When a client enrolls in the program, their eligible shares move into a new, segregated SLFP brokerage account. Schwab then lends the shares to other clients or financial institutions to facilitate trading strategies or to fulfill settlement obligations.

Introduction to over-the-counter (OTC) securities
Over-the-counter (OTC) securities consist of domestic and foreign securities, with more volatility, less liquidity, and less publicly available information than securities on listed exchanges. Many are small or micro-cap securities, considered to be speculative investments.

Introduction to Undertaking for Collective Investment in Transferable Securities (UCITS)
Undertaking for Collective Investment in Transferable Securities (UCITS) are investment funds based in the European Union (EU), which can sometimes be used as an alternative for clients who are unable to purchase U.S. mutual funds or exchange-traded funds (ETFs).