Global Trading and Other Products

International investing involves special risks such as currency fluctuations and political instability that should be considered prior to making an investment decision. Companies whose stocks trade on foreign exchanges and markets are not subject to the same accounting, regulatory, and reporting requirements as stocks that trade on U.S. exchanges. Investing in emerging markets may accentuate these risks. Most of the securities rated by Schwab Equity Ratings International ("SERI" or the "Ratings") are not registered for purchase or sale in the United States. As a result, although you may use the Ratings to make your own self-directed investment decisions and place your order through Schwab, neither Schwab nor any of its representatives are able to recommend specific foreign equities for purchase other than certain American Depository Receipts listed on US exchanges, which must meet additional criteria to be recommended to you. Schwab and its representatives may recommend the sale or continued holding of any foreign equity, including US ADRs, foreign equities traded in the US Over-the-Counter market, and foreign equities traded on a foreign securities exchange.

Important Disclosures about Schwab Equity Ratings International

Schwab Equity Ratings International are based on a quantitative model that is designed to evaluate international equities. The model assigns a rating to each eligible stock on the basis of a wide variety of investment criteria from a number of broad categories, or components. Ratings are based on a scale of A, B, C, D, and F. If a stock is not in the SERI universe of rated stocks, or no longer qualifies for inclusion due to one or more factors (including, without limitation, failure to meet minimum market capitalization, recent change of symbol, or is prohibited from coverage for regulatory or other reasons), it will be classified as NC ("Not Covered"). If a rating is not assigned to a stock because one or more critical data elements are missing, the stock will be classified as NA ("Not Available"). If Schwab does not publish a Rating on a stock due to unusual or extraordinary business circumstances related to the issuing company, the stock will be classified as NR ("Not Rated"). If an asterisk ("*") is assigned to the Rating of a stock, it indicates that you should check current news because a potentially significant business event has been announced for an A or B rated stock. Clients can view a short description of the event by clicking on the Rating. Although Schwab generally does not monitor C, D, and F rated stocks for current news, from time to time, asterisks may appear on a particular stock due to certain circumstances (e.g. the downgrade of a stock from a B to a C-rating). Schwab Equity Ratings are generally updated weekly, so you should always review and consider any recent market or company news before placing a trade.

Schwab Equity Ratings International utilize third-party data in the forming of a rating. While Schwab believes such third-party information is reliable, we do not guarantee its accuracy, timeliness or completeness. Third-party information is subject to change without notice. The news sources used come from independent third parties. Schwab is not affiliated with any of the news content providers. Schwab is not responsible for the content, and does not write or control which particular article appears on its website.

Quotes on Canadian securities are provided by the Toronto Stock Exchange. Trade executions are through third parties who may execute trades on a principal basis and may include additional fees, a mark-up or mark-down as appropriate. Investing in these securities involves additional risks related to currency exchange calculations and fluctuations, economic and political differences and differences in accounting standards.

The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of Morgan Stanley Capital International Inc. and Standard and Poor's. GICS is a service mark of MSCI and S&P and has been licensed for use by Schwab.

Consensus data is provided by Reuters Research; may exclude certain items or discontinued operations.

As your agreement for the receipt and use of market data provides, the securities markets (1) reserve all rights to the market data that they make available; (2) do not guarantee that data; and (3) shall not be liable for any loss due either to their negligence or to any cause beyond their reasonable control.

Schwab investment advisory affiliates may also receive research information from the Schwab Center for Financial Research that is not included in the SERI universe or is furnished on a basis to allow such investment advisory affiliates to manage their [pooled] investment funds as required under their investment objectives and strategies as set forth in their offering documents.

Schwab Equity Ratings International, the Percentile Ranks of the Ratings, and other material are for informational purposes only and are not an offer to sell or the solicitation of an offer to buy any security. Additionally, Schwab Equity Ratings International and the general guidance are not personal recommendations for any particular investor or client and do not take into account your individual circumstances, financial situation, investment or other objectives or needs. A particular investment may not be suitable for any particular investor or client. Before buying, investors and clients should consider whether the investment is suitable. Investors and clients should consider Schwab Equity Ratings International as only a single factor in making their investment decision while taking into account the current market environment. Accordingly, Charles Schwab & Co., Inc. ("Schwab") does not assess the suitability (or the potential value) of any particular investment. Schwab also does not provide tax advice and the views in the material do not take into account any client's or investor's tax situation. Clients and investors should consult their tax advisers before investing. Stocks may go down as well as up and investors (including clients) may lose money, including their original investment. Individual stocks presented may not be suitable for you. You should not buy or sell a stock without first considering whether it is appropriate for you and your portfolio. Past history is no indication of future performance and returns are not guaranteed.

Using Schwab Equity Ratings International with Country Risk Levels

In determining whether to invest in a particular stock within a nation's equity market, Schwab Equity Ratings International should be the first step in the process of selecting individual securities within that market.

Schwab Equity Ratings International represent Schwab's research opinion on the investment outlook for a stock, relative to the average performance of the equity market in which the stock trades or the company generally conducts its operations (the "Home Country"), over a 12-month period. Schwab Equity Ratings International generates its ratings on a country-by-country basis, without regard to the rated stocks or equity markets of other countries. This means, for example, that stocks of companies that compete within a single industry that spans national boundaries will not be rated relative to one another unless they also share a common Home Country.

Investors may also wish to consider Country Risk Levels, which provide a quantitative assessment of the risks of conducting business operations in a particular country. Country Risk Levels are produced by the Economist Intelligence Unit, an Economist Group business. The Economist Intelligence Unit is an independent entity that is not affiliated with Schwab.

Schwab Equity Ratings International generates its ratings without regard to the Country Risk Level of the applicable Home Country. Accordingly, a stock could be rated A or B (buy-rated) despite operating in a Home Country with a Country Risk Level indicative of relatively high risk. Country Risk Levels are intended to be most relevant to commercial bankers, institutional investors, and corporate executives who have made or are considering making direct investments in a country. Country Risk Levels are not, and should not be considered, an indication of the future performance of either individual equities within a Home Country or the future performance, relative or absolute, of a particular Home Country's overall equity market.

Important Disclosures about The Economist Intelligence Country Risk Level

*Copyright Notice: ©2011 The Economist Intelligence Unit Ltd. All rights reserved.

Disclaimer: While efforts have been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd. nor its affiliates can accept any responsibility or liability for reliance by any person this information.

Important Disclosures

The Country Risk Rating Level and its components -- the Sovereign, Currency and Banking Risk levels (the "Risk Levels") and the Country Profile, which includes an Overview, Key Indicators and Historical Averages (the "Reports") -- are provided to you for informational purposes only and are not to be used or considered as an offer, recommendation, or the solicitation of an offer to sell, or to buy any security, or pursue any particular investment strategy. The Reports and Risk Levels are created by the Economist Intelligence Unit ("EIU"), an independent third-party that is not affiliated with Schwab. Schwab does not write, control, or edit the information contained in the Reports or Risk Levels and cannot verify their accuracy, completeness or timeliness. Some covered countries and some components may be excluded from some published versions of the EIU Country Risk Ratings. Information presented in the Reports and Risk Levels can change without notice, in reaction to shifting market or political conditions. The information presented is not, and should not be relied upon as, an indicator of future results.