RxPC Inc (fka RXPC)

[PappaJohn]

Posted by: Kapone
In reply to: bohogirl who wrote msg# 68756 Date: 9/7/2006 5:19:00 PM
Post #

Even though I knew the answer, after seeing so many folks here and on HSM talk about this, I called Ameritrade and spoke at length with their trading and margin departments.

I won't bore you with the details of the conversations or the 35 minutes I spent on hold, listening to crappy music, but:

Bottomline: If you have a margin account, and you haven't "specifically" requested that shares of a security be transferred from street name to your name, they are available for shorting to the brokerage, regardless of any sell orders in place. The price at which you place your sell orders is immaterial.

If you do specifically request to have them transferred to your name (this is different from requesting physical certs, they still hold them for you), you can't sell them straight away even though they will show up in your portfolio. An additional step of "releasing" them to the brokerage is required before you can sell. All that takes is one phone call but it still needs to be done.

I don't know where this whole thing started that, by putting in GTC orders at a very high price takes them out of circulation, but Ameritrade (or atleast the representatives that I spoke to) doesn't validate that information.

Should that stop you from doing it? Of course not. They are your shares and if you feel that by putting them up for sale at high prices will achieve something, you should certainly do it.



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