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To: Wyätt Gwyön who wrote (84115)5/5/2007 4:45:20 PM
From: Paul Senior  Read Replies (2) | Respond to of 206326
 
If I understand right, the violations occur because stocks are bought and sold in a short period of time (a few days)in an IRA where there's not a lot of cash backup in the account (and margin is not permitted).

If trades are going to be made like this, why not just use options instead of stocks? Would seem to me to get the same effect and yet not tie up so much money as with purchase of stock. (and so not run afoul of the regs.)

I'm not knowledgeable about options. Are they not permitted in IRA's?



To: Wyätt Gwyön who wrote (84115)5/5/2007 6:39:47 PM
From: tom pope  Read Replies (1) | Respond to of 206326
 
What is ridiculous is the three day settlement rule in this electronic age. They've cleaned up the banks' shenanigans with clearing delays - remember when brokers would send you checks drawn on a bank in Walla Walla because it had short runways and long winters?