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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Travis_Bickle who wrote (136709)7/26/2008 2:36:56 PM
From: The VetRead Replies (1) of 306849
 
In a hot market the same stock can be bought, lent out, sold and sold again a dozen times a day.. As you correctly point out it will be three days before the settlement occurs and those DTC book entries are updated (if the stock is at the DTC - many of these transactions are netted out by the broker from his own records). In three days 100 shares could become 1000 or more before anyone is any the wiser, and even then they have moved on and gained another 3 days.. That is of course providing they settle at all.. If they don't then the brokers have 13 days....
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