Before investing in bonds, you should carefully consider and understand the risks involved. All bonds are subject to market risk and interest rate risk and you may lose money. Bonds sold by issuers with lower credit ratings may offer higher yields than bonds issued by higher-rated or "investment grade" issuers, but are usually associated with higher risks. High-yield bonds generally have a greater risk of default, which increases the risk that an issuer may be unable to pay interest and principal on the issue. In addition, high-yield bonds tend to have higher interest rate risk and liquidity risk, particularly in volatile market conditions, which makes it more difficult to sell the bonds.
E*TRADE from Morgan Stanley (“E*TRADE”) may act as principal or agent in connection with bond transactions. When acting as principal, E*TRADE may add a markup to any purchase, and subtract a markdown from every sale. E*TRADE may make money or lose money on a transaction if it acts in a principal capacity depending on a variety of factors. The markup or markdown will be included in the price quoted to you and you will not be charged any commission for a principal trade. Agency trades are subject to a commission, as stated in E*TRADE’s published commission schedule. Principal and agency trades may be subject to additional transaction fees, so please check the E*TRADE website at for details.

There are certain risks associated with investing in municipal bonds, and such debt securities may not be suitable for every investor. Investors should determine whether investing in such instruments is consistent with their financial circumstances, investment objectives, risk tolerance, tax status, and liquidity needs. The yield offered by a municipal bond generally increases with the risk of the bond and the time to maturity. Municipal bonds are typically illiquid; therefore, it may be difficult to sell them prior to maturity. Municipal bonds are subject to interest rate risk, and a full return of principal investment is not guaranteed.

Investors should review an issuer's offering documents, including the risk disclosures, before purchasing a bond. Some official statements and other issuer documents are available and free to the public through the Municipal Securities Rulemaking Board's online Electronic Municipal Market Access ("EMMA") system.

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