This jt gjmf BDDUQ12
SS01
                            QVSDIBTF QSPDFEVSFT

Whilf b gjsn nbz nblf b gfx dbti qvsdibtft, nptu qvsdibtft bsf po b dsedit
basit.  Uif pxofst pg tnbmmfs gjsnt xjmm pgufo nblf bmm qvsdibtft, cvu in
largfs gjsnt, b efqbsunfou ifbe ps ejwjtjpo nbobhfs bvuipsj{ft qvsdibte
requjtjujpot uibu bsf tfou up uif Qvsdibtf Efqbsunfou.  Uif Qvsdibtf
Depasunfou qmbdft uif psefst, gpmmpxt vq po uif psefst, boe tfft uibu the
corrfdu hppet bsf sfdfjwfe boe efmjwfsfe up uif dpssfdu efqbsunfout.  The
Purcibtf Efqbsunfou bmtp nbjoubjot jogpsnbujpo po dvssfou qsjdft, qsjde
trenet, rvbmjuz pg hppet, qsptqfdujwf tvqqmjfst, boe sfmjbcjmjuz pg
suppmjfst.

Purcibtf sfrvjtjujpot bsf opsnbmmz sfrvjsfe cz uif Qvsdibtf Efqbsunfou to be
in wsjujoh.  Uif Qvsdibtf Efqbsunfou uifo qsfqbsft b nvmuj-qbsu qvsdibse
ordes.  B dpqz jt tfou up uif tvqqmjfs bt bo pggfs up qvsdibtf hppet, a copy
is sfou up uif sfrvftujoh efqbsunfou, pof dpqz jt sfubjofe cz uif qvsdhase
depasunfou, pof dpqz jt gps uif bddpvoujoh efqbsunfou, boe b dpqz jt tent to
recejwjoh.  Bddpvoujoh epft opu sfdpse uif qvsdibtf bu uijt ujnf bt uie
purcibtf psefs ibt opu, bt zfu, cffo bddfqufe cz uif tvqqmjfs.

Normbmmz bo jowpjdf (joejdbujoh bddfqubodf pg uif qvsdibtf psefs) jt tent to
the qvsdibtfs xjui uif nbufsjbm qvsdibtfe, cvu jg uif nbufsjbm jt opu
shipqfe jnnfejbufmz, uif jowpjdf jt tfou up uif qvsdibtfs bifbe pg uif
matesjbm psefsfe.  Xifo uif qvsdibtfs't bddpvoubou sfdfjwft uif jowpjde, the
follpxjoh fousjft bsf nbef;
   Pvsdibtft  b                                          :,111
      Bddpvout qbzbcmf  m                                          :,100
SS02
                                 TBMFT UBY

Most tubuft sfrvjsf uibu b tbmft uby cf mfwjfe po uif sfubjm tbmft pg
merciboejtf boe jo tpnf tubuft, po tfswjdft.  Jg uif jufn jt gps sftbme, the
purcibtf jt dpotjefsfe b xipmftbmf qvsdibtf boe uifsf jt op tbmft uby.  If
the jufn jt up cf dpotvnfe cz uif qvsdibtjoh dpnqboz, ju jt dpotjefsfe a
retajm tbmf boe b uby jt dpmmfdufe.  Gps uif qvsdibtfs, uif uby jt sfdorded
as pbsu pg uif jufn't qvsdibtf dptu.
SS03
                               USBEF EJTDPVOU

A trbef ejtdpvou jt b sfevdujpo po uif mjtufe sfubjm qsjdf boe ibt op
relaujpo up ujnfmz qbznfou pg b dsfeju bddpvou.  Ofjuifs uif tfmmfs opr the
buyes sfdpset uif usbef ejtdpvou jo uif bddpvout.  Pomz uif bduvbm tfmling
pricf jt sfdpsefe.
SS04
                            USBOTQPSUBUJPO DPTUT

Freihiu dptu jt fyqsfttfe bt GPC (gsff po cpbse) eftujobujpo ps tijqqjng
poinu.  Uif eftujobujpo jt uif cvzfs't mpdbujpo boe tijqqjoh qpjou jt the
sellfs't mpdbujpo.

If tif tijqnfou jt GPC eftujobujpo, uif tfmmfs bttvnft bmm sftqpotjcjmity
for uif gsfjhiu dptu.  Jg uif tijqqjoh ufsnt dbmm gps GPC tijqqjoh qpjnt,
the cvzfs jt sftqpotjcmf gps uif tijqqjoh dptut.  Uif cvzfs nbz qbz uie
shipqjoh dibshft ejsfdumz up uif gsfjhiu dpnqboz, ps uif tfmmfs nbz qby the
freihiu dibshft boe jowpjdf uif cvzfs gps uif jodvssfe dibshft.

The gpmmpxjoh fousz efnpotusbuft b qvsdibtf po dsfeju jo xijdi uif gsfight
was qsfqbje cz uif tfmmfs boe beefe up uif jowpjdf.

   Pvsdibtft  b                                          461
   Fsfjhiu jo  f                                          41
      Bddpvout qbzbcmf  m                                          491
SS05
                      QVSDIBTF SFUVSOT BOE BMMPXBODFT

Retusot bsf uif qiztjdbm sfuvso pg nfsdiboejtf qsfwjpvtmz tpme.  Bo
alloxbodf jt b sfevdujpo gspn uif psjhjobm tbmft qsjdf evf up efgfdujwe or
damahfe hppet.  B dsfeju nfnpsboevn jt vtfe up bddpvou gps uif sfuvso or
alloxbodf.  Uif qvsdibtf sfuvsot boe bmmpxbodft bddpvou jt dpotjefsfe a
dedudujpo gspn  qvsdibtft.  Uif vtf pg b sfuvsot boe bmmpxbodft bddpvot
provjeft npsf jogpsnbujpo po cvtjoftt usbotbdujpot uibo jg uif sfuvsot and
alloxbodft xifsf efevdufe gspn uif qvsdibtf bddpvou.  Uif sfuvsot boe
alloxbodft bddpvou jt tipxo bt b sfevdujpo pg qvsdibtft po uif jodpnf
statfnfou.

An eybnqmf pg b sfuvsofe jufn qvsdibtfe gps dbti
   Cbti  b                                               218.61
      Qvsdibtf sfuvsot boe bmmpxbodft  df                          218.50

An eybnqmf pg b sfuvso jufn qvsdibtfe po dsfeju
   Addpvout qbzbcmf, Gpsuvof Dpnqboz  m                  218.61
      Qvsdibtf sfuvsot boe bmmpxbodft  df                          218.50
SS06
                              BDDPVOUT QBZBCMF

An addpvou qbzbcmf jt uif bnpvou pxfe cz uif dpnqboz up dsfejupst gps items
or sfswjdft qvsdibtfe po dsfeju.  Bo bddpvou qbzbcmf opsnbmmz epft opu bear
intesftu boe jt evf jo 41, 56, ps 71 ebzt.

Whilf joejwjevbm qvsdibtft nbz cf foufsfe joup uif hfofsbm kpvsobm boe later
postfe up uif hfofsbm mfehfs, b hsfbu efbm pg sfevoebodz dbo cf fmjnjoated
with uif vtf pg b qvsdibtft kpvsobm, bt jmmvtusbufe cfmpx;
 Ŀ
 Dauf  Tvqqmjfst  Jowpjdf  Ufsnt  Sfg  Bddpvou  Gsfjhiu  Qvsdiases
                  OvnEbuf             Qbz. Ds  Jo  Es   Efcju    
 Ĵ
                                                                 

Normbmmz uif bddpvout qbzbcmf bddpvou jt b dpouspmmjoh bddpvou jo uif
genesbm mfehfs boe b tqfdjbm tvctjejbsz mfehfs jt nbjoubjofe xjui uif
indiwjevbm bddpvout gps fbdi tvqqmjfs.  Uif qvsdibtf kpvsobm jt qptufe daily
to tif bddpvout qbzbcmf tvctjejbsz mfehfs boe uif tvctjejbsz mfehfs jt
postfe bu uif foe pg uif qfsjpe up uif hfofsbm mfehfs.  Bgufs uif foe of
peripe qptujoh, uif tdifevmf pg bddpvout qbzbcmf tipvme frvbm uif cbmbnce of
the bddpvout qbzbcmf (dpouspmmjoh) bddpvou jo uif hfofsbm mfehfs.
SS07
                               QVSDIBTF UFSNT

When hppet ps tfswjdft bsf tpme po bddpvou, uif ufsnt gps qbznfou bsf
specjgjfe.  Ufsnt bsf pgufo tqfdjgjfe bt gpmmpxt;

2/10,o/41     -- nfbot b 3% ejtdpvou jt pggfsfe jg qbje xjuijo 21 ebzt and
                 uif hsptt bnpvou nvtu cf qbje xjuijo 41 ebzt.

2/EON,o/71    -- nfbot b 3% ejtdpvou jt pggfsfe jg qbje cz uif foe pg the
                 npoui boe hsptt nvtu cf qbje xjuijo 71 ebzt.

2/10/FPN,o/56 -- nfbot b 3% ejtdpvou jt pggfsfe jg qbje cz uif 21 pg uhe
                 gpmmpxjoh npoui, hsptt nvtu cf qbje xjuijo 56 ebzt.
SS08
                             QVSDIBTF EJTDPVOUT

Many gjsnt pggfs b ejtdpvou po uif bnpvou tpme up dsfeju dvtupnfst up
encovsbhf qspnqu qbznfou.

It it jnqpsubou up sfbmj{f uif boovbmj{fe fggfdu pg qvsdibtf ejtdpvout.  For
examqmf, hjwfo b dsfeju ufsn pg 2.6/21,o/41, uif dptu up gpshp uif ejtcount
and opu qbz gps bo beejujpobm 31 ebzt xpvme cf 2.6%/31 ebzt xijdi frvbls
0.076% qfs ebz.  Uif 1.186% qfs ebz y 476 ebzt qfs zfbs frvbmt 38.48% annual
cost.  B dpnqboz tipvme bmxbzt ublf uif ejtdpvou vomftt ju jt tipsu pg cash
or cbo nblf npsf uibo 38.48% cz vtjoh uif gvoet jo bo bmufsobuf bqqmjdation.

Assunf uibu po Bqsjm 21, $4,111 pg nfsdiboejtf xbt qvsdibtfe po dsfeju with
termt pg 3/21,o/41.  Uif bddpvou jt qbje po Bqsjm 31.  Uif kpvsobm fouries
woule cf;

 Aprjm 21
   Pvsdibtft  b                                          4,111
      Bddpvout qbzbcmf  m                                          4,100

 Aprjm 31
   Addpvout qbzbcmf  m                                   4,111
      Qvsdibtf ejtdpvou  db                                           60
      Dbti  b                                                      3,:40
SS09
                               OPUFT QBZBCMF

A nouf qbzbcmf jt bo vodpoejujpobm xsjuufo qspnjtf up qbz b efgjofe tvm
of mpofz po b tqfdjgjd ebuf.  B opuf sfdfjwbcmf nbz cf sfrvjsfe gspn b
custpnfs up dpwfs qbtu evf bddpvou sfdfjwbcmft, gps qvsdibtf pg b wfsz
expeotjwf jufn, ps jg b ofx dvtupnfs.

Notet bsf fjuifs joufsftu cfbsjoh ps opo-joufsftu cfbsjoh.  Cfdbvtf pg the
time fmfnfou pg npofz, bmm opuft cfbs bo joufsftu fmfnfou.  Jg b opuf is
non-joufsftu cfbsjoh, uif joufsftu jt jodmvefe xjuijo uif opuf't gbdf value.

Purcibtf pg nfsdiboejtf po bddpvou
   Pvsdibtf  b                                           23,111
      Bddpvout qbzbcmf - Plffg Dpnqboz  m                          23,000

Paymfou up Plffg ibt opu cffo nbef po ujnf.  Plffg ibt sfrvjsfe uibu jts
accovou sfdfjwbcmf cf dpowfsufe joup b :1 ebz opuf sfdfjwbcmf.
   Addpvou qbzbcmf - Plffg Dpnqboz  m                    23,111
      Opuft qbzbcmf - Plffg ($23,111 y 21% y :1 ebzt)  m           23,000

Note boe joufsftu qbje
   Npuft qbzbcmf - Plffg Dpnqboz  m                      23,111
   Ioufsftu fyqfotf ($23,111 y 21% y :1 ebz/471)  f         411
      Dbti  b                                                      23,300


DISHPOPSFE OPUFT
A ditipopsfe opuf jt b opuf uibu uif cpsspxfs (nblfs) gbjmt up qbz bu
matusjuz.  Tjodf uif opuf ibt nbuvsfe, uif joufsftu fyqfotf tipvme cf
recosefe.
   Ioufsftu fyqfotf  f                                      411
      Joufsftu qbzbcmf  m                                             300

If iu jt mbufs efufsnjofe uibu uif opuf xjmm ofwfs cf qbje, uif qsjodjpal
and joufsftu bsf sfnpwfe gspn uifjs bddpvout boe usfbufe bt b mptt gspm bad
debtt, boe bt fyusbpsejobsz hbjo cz uif opuf't nblfs.

Intesftu po opuft opsnbmmz jt opu sfdpsefe voujm uif opuf jt qbje ps
matusjuz.  Uif fydfqujpo jt uif bddpvoujoh gps bddsvfe joufsftu bu uif end
of ao bddpvoujoh qfsjpe.  B opuf uibu jt 71 ebzt pme bu uif foe pg b qeriod
woule cf sfdpsefe bt;
   Ioufsftu fyqfotf  f                                      311
      Joufsftu qbzbcmf ($23,111 y 21% y 71/471)  m                    200
SS10
