if you purchase SU on Monday, that trade will settle (be paid for) on Thursday. you can then sell the SU and buy something else immediately. you can also sell the SU any time before Thursday. if you sell on Tuesday, you will now not be able to use those sale proceeds (in a cash acct) to buy a new stock until 3 days after the sale, i.e., Friday. more precisely, if you do not mind committing a "settled funds violation", you WILL be able to use the proceeds (probably, depending on the borker), but the borker will, at the least, send you a warning letter notifying you of the violation, and subesequent violations of the same ilk will result in 90 days in trader jail.
the above is my understanding of the SEC stipulation.
like i said before, so far, so good. but they get screwy in the judgment calls (see my previous message). and Fidull has extended this idiocy even further by putting a trade restriction on all cash accts under the same Social. they even told me that the restriction would "haunt" my money if i transferred it to another borker (such as Charles Slob)--i.e., that the entire destination acct would somehow become "infected" by the originating acct's trade restriction--but they are full of shiat on that count. |
