InvestorsHub Logo
Followers 1
Posts 41
Boards Moderated 0
Alias Born 04/25/2021

Re: ar post# 22558

Tuesday, 06/20/2023 8:57:25 AM

Tuesday, June 20, 2023 8:57:25 AM

Post# of 22569
Any stock can be purchased with any brokerage. Penny stocks are limited to protect investors. I know people that have lost their shirts in a single day... with "regular" stocks, commodities, options.

Some brokerages, like my bank's, will not allow you to buy any stock less than $5. They will however let you buy at $100 and sell at $1...

The issue for some is "Accredited Investor" and also what "they", Schwab, determine is a commercial account. It is difficult to figure out with all of the rules and regulations, which brokerages apply them and how. Schwab bought out TDAmeritrade. Some TD accounts have been transferred to Schwab. which gives some a stronger position within the brokerage. The bad part is they may classify those as "professional" or "corporate" making accredited a much higher bar to cross. The lower a stocks market cap, the less one can buy, or they flag them as "manipulating" the market.

It makes one wonder how the brokerages determine how to apply the "rules" or decide to whom they send trade warnings and/or limitations.

Billionaires and investment firms can trade with very little oversight, appearing to manipulate the market, maybe even get fined after the fact. $100k fine for $100MM gain... of course that never happens. https://www.sec.gov/news/press-release/2018-226 and we won't even go to the Twitter situation. and more https://www.sec.gov/news/press-release/2023-3 BlackRock is fun to watch.

Some get flagged, reprimanded for merely placing an order. The brokerage will not allow large or multiple sales for various reasons.

Don't be mad, be careful.

This is my personal take on this particular subject. Remember, never risk party cash... one must live.