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Strategies & Market Trends : AIM Questions and Answers -- Ignore unavailable to you. Want to Upgrade?

To: Nimbus who wrote (209)	11/28/2001 8:26:34 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 221

Hi N, Yes, to your question. Newport assumed that Buys and Sells are being done generally in accordance with recommendations of AIM. So, Buys are adding 50% to Portfolio Control (PC) where ADD SHARES will increase PC by the same value as the value of shares added. On the Sell side, sales don't change PC, but if you were to reduce the number of shares in the account with the DECREASE SHARES option, then dollar for dollar the PC would be reduced. Additions and Decreases are considered to be Non-AIM events. I use these features quite a bit. For instance when I reconcile accounts after paying taxes, I use the Decrease Cash option to take the cash from the account. So, if you're just buying or selling a few extra shares to get to the nearest round lot, then you can treat it as an AIM Buy or Sell. If you are making a trade that is several times larger than AIM's recommending, you'll just be throwing sand in the works. If buying lots more than AIM wants, AIM will turn around and have you selling the excess very soon. Same if you sold much more than AIM is suggesting. So, if you are making significant changes in the amount of the equity beyond AIM's suggestion, you should do the surplus as an Add or Decrease. Best regards, Tom