Ameritrade (fka AMTD)

[Stock]

I learned something about Ameritrade I did not know: They allow their employees to trade stocks.

I called today to ask about getting option approved in my IRA account. And I had questions about last week's NT reverse split and the related option strike adustment. Up until today, the NT strikes had not been split-adjusted.

I asked what generally happens with the options when there is an optionable stock, and was told that the number of open contracts is adjusted and then the new strikes are published, trading resumes when the issuer allows it, and life goes on.

I asked about fractional contracts, and the call center person said that he had seen a circumstance where a company would make good (in cash) for fractional options... he said he had only seen that happen one time. I thought that was odd. I asked if he was a licensed person, and he said he was "working on it" but that he had personal experience with that with his own account.

As I was concluding my questions, I asked how long it would take to get option approval and was told 3-5 days(the web site says this, too, so he's batting about .900 at this point)... and he added that he's "waiting on option approval too..."

Hold on. Say what? I asked if they are allowed to trade stocks and options as employees and he said YES...BUT their accounts are monitored...

Okay, so I know that licensed folks have to get NASD approval and all and disclose the existence of accounts, but this is a new one on me... Ameritrade ALLOWS them to trade!

I ended the call shortly thereafter -- thinking that the naked short-fearing, broker-trashing, conspiracy nuts on iHub (particularly this thread
#board-6401) would LOVE to know this little tidbit if they didn't know already... they would be twiddling their mullets over this!

But on a more personal level, it reminded me of trip to Las Vegas in the old days and how shocked I was to see Horseshoe employees gambing in their own casino in uniform... As I recall, Benny Binon lived the philosophy of any bet, any amount, any time and allowed employees to wager their paychecks to keep that cash under his roof... and that was the ONLY casino in town that allowed it -- and probably had the most hardcore gamblers on the payroll in town!

So is Ameritrade a gambling-oriented oganizational culture? I think it's FUNNY that Ameritrade will allow employees to trade stocks and options, but will NOT allow them to post on message boards like iHub or lose their jobs!

I wish one day that some former TDAmeritrade employees would come forth on iHub and roll back the curtain... THAT would be FUN!

Signing off for now.

Your pal,

DrWorm