My Dear Mr. PartTimeFinincialConsultant :
Math, as relates to, and as used in the stock market , sometimes only has a vague association with the science of mathematics.
When I observe discussions on "shorting" , and things get heated and conflicting info is used ----- I often like to throw in the term ----"when issued" as additional fuel on the fire.
Not that the terms have anything to do with one another, but they both are equally not completely understood. .......... ggg
As an additional point on the "short" discussion.
Sometimes to get paid interest on the "proceeds" from the short sale, all one needs to do is raise a small amount of cain with the broker, who, most of the time will think you've lost your mind until he gets ahold of the home office and finds out that when asked for , it can be obtained.........in the past, it was gotten with more ease.
For example, Schwab used to pay me interest on the proceeds and no charges on shorting until the advent of eSchwab ---- now they have done away with both.
With Raymond James, currently, they do pay interest to me on the proceeds, but they aslo remove the purchase price from my account, which makes basically a zero sum game of the money, except for the removal of margin or purchasing ability of the account.
I have an account with MFI that currently does pay interest on the proceeds, and doesn't deduct the money from my account to pay for the sale and uses a small fee for the borrowing of the certificates--- (this is the completely proper method because it reflects in money in the account actually what transpired ) --- but I've been informed that it is getting ready to change .
Now, Ron, I know that you knew all the above ,but it is small potatoes compared to the "when issued" term I used at the top of the post.......ggggg
BTW ---- if a discussion ensues on that topic ---I will not participate ---- it takes too many sentences to explain........gggggg
----- would you please go through the explanation of "when issued"........?
So,
depending upon the particular brokerage house that one uses for shorting stocks,
both Big Brother and Wiesia can be correct.
This should provoke some comment.........VBZGGG
Regards ---PartTimeParticipant Nemer |
