Different brokers will give you different stories. But when pressed on the subject, most finally admit that it boils down to this...
1) You can continue to trade the shares even AFTER they have been ordered. You can trade them right up until the broker physically mails the shares to you. Most brokers will say something like, "We do not encourage customers to do this." Of course they don't encourage it because it is more work for them and it takes away their ability to short trade your shares. They would rather be in control.
2) You would be unable to trade the shares only for the time it takes to get them (whether in person, or by mail).
3) Once you have the shares, you can still sell them on a "not in account" basis. You should then deliver them to the broker. If you don't deliver in 3 days, there is usually a late fee of around $15. Of course, you DO have to make sure the shares are physically delivered to the broker.
The total amount of time you are unable to trade may vary depending on how you get delivery (in person or by mail or overnight mail, etc). Under most circumstances, I cannot see why that time frame would take any longer than 1-2 days if you have them sent overnight mail.
If your broker seems unwilling to help you do this, you might question why. Is your broker acting in YOUR best interest? Of course, some brokerage houses are better than others.
Certainly, in order for a cartel to have strength, each member should be knowledgeable of their own situation. That is the only way each person can gain confidence in the process.
Talk to your brokers about this. Let's try to clear these issues BEFORE we start anything. Let's continue to discuss it here on the thread and see what we come up with as a "unit." It would be best for members to have confidence in each other.
I invite your questions and thoughts because I also want to reduce any risks. (Anyone that might be lurking is also invited to comment.)
Best wishes,
Brad
PS. I might be unavailable until Saturday, so if I don't respond immediately, you know why. Thanks. |
