PermRock Royalty Trust operates as a statutory trust. Its purpose is to own the Net Profits Interest, to distribute to the Trust unitholders cash that it receives in respect of the Net Profits Interest, and to perform certain administrative functions. The Net Profits Interest entitles the trust to receive the net profits from the sale of oil and natural gas production from the underlying properties of its trustor.

Investing in stocks is risky and each stock can have its own set of risks. Below is a list of risks that generally apply to all stocks:

Volatility: The performance of stocks can be volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in stocks.

Liquidity: Some stocks may suffer from low liquidity which could prevent you buying or selling them at the price you want or expect.

Complexity: Specific stocks and ETFs may carry with them specific complex risks that are hard to understand. Do your own research and if something sounds too good to be true, it probably is.

Don’t put all your eggs in one basket: Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.

If you want to learn more about specific risks related to equity securities, please visit our dedicated equities disclosure page.