for IRAs... at BrownCO, as long as you have the *aggregrate* cash on hand for all purchases, you can buy+sell till you're blue in the face. what BCO doesn't allow (at least this is what their notice said that was sent out a few months ago) is to use any day's sales proceeds to cover the purchases.
i personally find this issue very confusing as it seems diff IRA brokers permit a variety of things. they are, however, all consistent w/ the fact that use of margin is not permitted for IRAs. some brokers *will* allow sales proceeds to be used to buy additional shares, as long as the sale was for shares purchased a previous day. some are more restrictive.
my suggestion, if you are unsure, is to do the 'questionable' trade w/ a live broker, explain your situation, and have them do the trade. if it's discovered the trade is not allowed, then its the brokers fault, not yours. |
