Penson Worldwide Inc fka PNSNQ

[FrankLind]

This is why I got out of Zecco and switched to Schwab two months ago. I analyzed Penson's financials. I was worried.

Bankruptcy is unlikely, but massive share dilution to prop up operations is likely simply because they have big cash flow problems.

This is why short sellers are on it and the longs have left. It would probably have a knock-on effect in terms of affecting the brokers with Penson.

Normally, one of two things happen.

a)your account is transferred to another broker
b)there is an "orderly liquidation" of your holdings

I was afraid of this happening because I hold rather illiquid stocks and I am not a US citizen.

Your account is insured up to 250 or 500 thousand.

Of course Zecco denied any problems with Penson, fearing mass-exits.

I would switch to Fidelity or Schwab.

I also learned certain fees imposed by Penson (non-DTCC) fees and certain restrictions on trading did not exist at Fidelity or Schwab, yet Penson portrayed them industry wide practices.