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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (83326)	4/20/2007 1:33:29 PM
From: ridingycurve	Read Replies (2) \| Respond to of 206326

I had to call Fidelity today on another matter anyway, so I asked again how settled funds worked in an IRA. We went through the specific example of a stock purchased on Monday and sold on Wednesday. As I understood the rep, the clock begins on Monday to determine when funds from a subsequent sale could be redeployed. A purchase on Monday settles at the close Thursday. If the security is sold in the intervening period, the funds can be redeployed on Friday. The sale date does not enter the equation, and the clock starts over on Friday. My guess is that it works the same way in a cash account. In fact I believe it has applicability in a margin account in the sense that successive transactions in such an account would generate margin interest even when the total of the investments never exceeds the cash equivalent of the account. The margin interest is generated from reinvestment of funds from transactions that have not yet settled. Please don't take my word for it. The rep could have been mistaken or I could have misunderstood him. Will be interested in the answers you get from private access. I've never bought a Treasury or CD in an IRA, but will be interested in the answers you get on that too. Hard to imagine that any rules apply to matured CD's since they are not securities. Years ago the rule might have had some applicability to CD's had there been such a thing as IRA's. At one time many CD's, if not most by dollar volume, were issued as negotiable instruments. I don't know if anyone issues negotiable CD's anymore. I certainly haven't seen one in many years.