Replies to post #116 on Worthless Securities DTCC Non-Transferable list (PENSON)

[Farmboynate]

If I remember reading Correctly any stock that R/S will have to become re DTC eligible but I don't think it is that hard of a thing get RE DTC eligible

[Yosako]

One question $hellKing. What if someone on a CASH account buys $25 or so worth of a non-DTC stock then sells it without having further money in the account (except for the sell-side commissions)? The broker would have to eat the fees for lunch? (as CASH accounts can't be in the red)

[Yosako]

A clever way to kick a crooked brokerage's ass:

1) Open a CASH account, then pull the money leaving like $200 or so.
2) Buy 5000 shares of 9 subpenny non-DTC POS.
3) Buy 5000 shares of yet another non-DTC which also is so crappy as to be labeled non-transferable/worthless (no TA for 6 years), leaving like $2 in the account.

A month later, they'll charge $7 or so for holding a non-transferable stock. With no money in the account, they'll proceed to the sale of the stock...triggering a deadly chain reaction.