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To: Ken Adams who wrote (12402)	2/28/2000 12:36:00 PM
From: Dan Duchardt	Read Replies (2) \| Respond to of 14162

Ken, Selling a stock the day you buy it does not necessarily imply free-riding, even if your broker does end of day accounting. A simple example would be a $5,000 account that starts the day in cash, buys securities worth up to $5,000 and sells them before the end of the day, ending in cash. In this case you have used your money only once, and there is no violation of Reg T or any other rule I have found. If there really is a rule against selling the day you buy in a cash account then a lot of brokers are in violation. That would mean I'd have to sit and watch a bad trade get worse until I could exit the next day... not something I'd like. Exactly!!! Such a restriction in today's market is totally unfair. I have my own favorite example in my IRA account where (at least until last week; I think it's changed now) selling on the day you buy is prohibited. In December I bought a stock that went up 15% in the first hour. I wanted to sell but could not. By end of day it was up about 5%. Next day it jiggled around some. I held out for a retest of the high, which never came. Two weeks later I was down 30%, and I finally sold after 6 weeks for about half the gain I could have made in the first hour, feeling lucky to get out without a loss. I'd really like to find something official that states very clearly what is and is not allowed in cash accounts. I have a feeling my broker is being overly restrictive, but I'd prefer not to have to go broker shopping. Dan