Weiss Research began publishing Premium Services in 1992 to provide investors with a tool for more aggressive investing, while limiting risk to the amount invested.

Since inception, these Premium Services have been based on the following model:

First, Weiss Research's Premium Services recommend primarily the purchase of equity options.

Second, Weiss Research's Premium Service customers typically have many years of investment experience and substantial liquid assets. According to a 2003 Weiss Research survey, 91.5% have attended college, 81.6% have more than five years of experience investing in stocks, and 90.7% have more than one year of experience with options. Their median liquid assets is approximately $400,000.

Third, Weiss Research recommends that no more than 10% of an investor's liquid assets be used for trading based upon its Premium Services, with most of the balance allocated to conservative investments.

Fourth, all Weiss Research Premium Service subscribers receive a manual containing substantial educational material on options and other high-leverage investments, including full disclosure to subscribers regarding the related risks. For example, the following statements are contained in the manuals received by new subscribers to Weiss Research’s options services:

• "The expected market move in the stock has to happen — or at least get underway — before the option expires. Otherwise, the option can expire worthless, and you will lose the entire amount you invested in that option."

• "80% of all options expire worthless, whether puts or calls. Our job is to help you reduce that percentage."

• "If you currently require all, or nearly all, of your capital to generate the income you need to live on, this program is not for you. Also, you should not use funds allocated to health care, long-term care, college tuition or similar basic needs."

Similar risk disclosures are provided for publications that recommend small cap stocks or other investments that may involve higher than average risk.

Fifth, Weiss Research has required that risk disclosures be made in (a) the body of each marketing letter, (b) in the order form of each marketing letter, (c) in its terms and conditions displayed prominently with each marketing letter and (d) in the manuals subscribers receive when they begin their service.

Overall, Weiss Research believes that there are substantial investment opportunities in more aggressive investments and that these can best be realized with good knowledge — and control — of downside risk.