Re: Financial topics
Posted: Mon Apr 09, 2018 11:27 pm
Regulation T.John wrote:What's the SEC violation?
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Regulation T.John wrote:What's the SEC violation?
Cash Account Regulation
While the primary goal of Regulation T was to govern margin, it also introduced transactions rules for cash accounts. Because it takes up to three days for securities transaction to settle, meaning when cash is delivered to the seller of securities, a situation can arise when an investor buys and sells securities before paying for them from his cash account. This is called freeriding, which is prohibited by Regulation T. In this case, the investor's broker must freeze the cash account for 90 days, requiring the investor to fund securities purchases with cash on the date of the trade.
Read more: Regulation T (Reg T) https://www.investopedia.com/terms/r/re ... z5CEkN3mCg
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https://www.bogleheads.org/forum/viewtopic.php?t=83298Post by FrugalInvestor » Sat Oct 01, 2011 8:39 pm
livesoft wrote:
An easy way around this restriction is to have 2 or more brokers, or to make your account a margin account.
I love this. It is exactly the reason that the results of government regulation, our tax code, etc. is so unpredictable.
I would have had to get out at the end of the day.John wrote:Hmmmmmm. So if you'd gone short at noon, and got out at end of day,Higgenbotham wrote:Today was a good day for me to stay out of the market.
I looked around noon, near the high with the S&P up 44, and thought all that brainpower got it right. Pokemon Go analog, here we come.
At the end of the day with most of those 44 points lost, I thought who would have predicted that, looks terrible.
I don't believe I would have sold that high.
you would have made a ton of money. Tsk, tsk.
The farmer then radioed up to the stock brokers in the next town and said forget about the first guy but you can probably sell some high commission mutual funds to the second guy who comes in. Send me my cut of the commission in the morning.aeden wrote:A traveler came upon an old farmer hoeing in his field beside the road. Eager to rest his feet, the wanderer hailed the countryman, who seemed happy enough to straighten his back and talk for a moment.
"What sort of people live in the next town?" asked the stranger.
"What were the people like where you've come from?" replied the farmer, answering the question with another question.
"They were a bad lot. Troublemakers all, and lazy too. The most selfish people in the world, and not a one of them to be trusted. I'm happy to be leaving the scoundrels."
"Is that so?" replied the old farmer. "Well, I'm afraid that you'll find the same sort in the next town.
Disappointed, the traveler trudged on his way, and the farmer returned to his work.
Some time later another stranger, coming from the same direction, hailed the farmer, and they stopped to talk. "What sort of people live in the next town?" he asked.
"What were the people like where you've come from?" replied the farmer once again.
"They were the best people in the world. Hard working, honest, and friendly. I'm sorry to be leaving them."
"Fear not," said the farmer. "You'll find the same sort in the next town."