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Strategies & Market Trends : The Final Frontier - Online Remote Trading
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To: cj who wrote (4236)5/20/1998 11:35:00 AM
From: Souze  Read Replies (1) of 12617
 
CJ,

Our understandings of the SEC reg may not be all that different. My broker also lets me use the proceeds from a stock sale to immediately purchase another stock. And I can keep rolling the money from one stock to another all day long if I want to.

The restriction they impose, and which they say is an SEC reg, is that the initial purchase has to be funded by either cash or the sale of another holding (stock, mutual fund, option, anything else) in time to settle at or before the stock purchase settles. Because of the difference in settlement delays, this allows me to buy a stock one day and pay for it with an option sale two days later - they will both then settle at the same time.

I am by no means an expert on this. I am only quoting my broker. I'm clear on what I was told. I cann't swear that what I was told is right, and would appreciate any feedback.
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