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To: deke leatherman who wrote (10239)	11/12/1998 1:31:00 PM
From: Bill Rood	Read Replies (2) \| Respond to of 16892

Anyone else getting there fills 100 shrs at a time. Bought ESST filled 100 shrs at a time.

To: deke leatherman who wrote (10239)	11/12/1998 9:00:00 PM
From: BradC	Respond to of 16892

<The reason for practice of using the 3 day close rule is basically greed. The house has the use of the money and are able to earn interest for themselves for the three day period.> I'm trying to understand this. Eg. Assume my margin account has sufficient equity but $0 cash balance. This morning I buy 1000 shares of XYZ at $10, My balance is now -$10,000. (Ignoring commission) This afternoon I sell my 1000 shares of XYZ at the same $10 my account balance is now back to $0. No money or stock actually changes hands until settlement in 3 days at which time the stock I purchased is delivered to settle the stock I sold. I am wondering how the broker profits from this transaction if the funds from the sale are not received until settlement day and payment for the stock is not made until settlement day as well. I would have thought everything cancels out and no interest is made by anyone. Brad