To: on parole who wrote (7396 ) 12/2/1998 7:44:00 AM From: Handshake™ Respond to
R, if your broker did not allow you to trade then its time to find another broker. The settlement rules are quite simple. Some will not allow you to trade BUY unless the money is in the account, but often times if they know who you are and have had an account with the firm for an extended period then they will execute the trade and trust you that you will supply the funds within the 3 business day settlement period. The same works on the flip side when you SELL. Once the order to issue a cert goes in the shares still show up in the account until the cert is received back from the TA to the firm. The only lag "black hole" period is when the firm mails the cert to you. Thats anywhere from a day to a week. So getting them the cert on settlement day is not that big of a deal. We have this fear (control) that we have to be able to sell at a moments notice...that we need that stock in an account so we can trade...WRONG, With a cert you can go anyplace, anywhere, anytime and shop til you drop on the best broker to handle your transaction. And if your cert is for 100,000 shares and you want to sell 10,000 shares you can do so...I know R you know these things just mouthing off. I have many many good friends that are brokers, and I trust all of them, but they are not experts in the back office rules. Even though that stuff is on the exam, much get flushed once a passing grade is received and its time to pick up the phone. And oh by the way ask your broker what a reg T violation is. Get the cert folks you'll have plenty of time to trade this issue and don't be so quick to push the panic button. Its all a tug of war with the MM's, and the clock will be ticking against them...not YOU!
