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

To: ridingycurve who wrote (83329)	4/20/2007 2:39:24 PM
From: upanddown	Read Replies (2) \| Respond to of 206326

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. I think you are pretty close there but I will also check next week. The surprise is that sale date during the settlement period doesn't matter. I would have thought a Wed sale would only be available on Mon rather than Fri. I made a mistake in my previous post. My violation was a buy/sell/buy combo rather than sell/buy/sell. You may have misunderstood my other question. It really had nothing to do with unsettled funds. You buy a CD. Let's say the settlement date is Thurs. Is the cash still earning interest in your MMF thru Wed or is there a gap in the earnings stream as the transaction settles? Maybe where the funds are transferred out of the MMF on Mon and earn nothing on Tue/Wed? The reverse might also apply at maturity. The point is really moot for me now since I am virtually certain that the institutional MMF is superior to current rates for CDs or Treasuries. John

To: ridingycurve who wrote (83329)	5/5/2007 11:22:02 AM
From: Wyätt Gwyön	Read Replies (2) \| Respond to of 206326

re: settled-funds violations in cash accts (IRAs), ridinycurve relates the following from a Fido rep: 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. i recently asked a Fido mangler about the same example and was given different info. i was told specifically that in this type of example the sale date determines when the funds are available for a new purchase--i should say, are available without incurring a settled-funds violation. it may be possible to do the trade earlier, but a violation would occur. once you get a certain number of violations within a certain time period, they slap a settled funds trading restriction on the acct and it can ONLY trade settled funds (i.e., you cannot sell a stock and immediately buy another with the proceeds; you have to wait three trading days). so, even within Fido they cannot keep their story straight. no wonder i get these damn violations all the time. i the meantime, i've gotten another violation over at Schwab. they sent a notice which includes the following guidelines, which may or may not be the same as at Fido. this is interesting because apparently you can get a violation on a SALE, whereas i always thought it only occurred upon purchase with unsettled funds. in any case the only solution i see is to keep multiple borkers and shuttle funds among accts when one acct gets restricted. Important information about trading without sufficient funds. When we place orders for accounts without sufficient settled funds or securities on deposit, we are required to monitor the account to make sure it complies with these conditions: You promptly make a full cash payment with settled funds, or deliver previously owned securities into the account within the payment period; and You do not sell the securities purchased until full payment with settled funds has been made; and You do not make payment with the proceeds from the sale of other securities made after the trade date. If these conditions are not met, we are required to withdraw your ability to trade without sufficient funds on deposit and this restriction will last for 90 calendar days.