| Title: | Market Investing |
| Moderator: | 2155::michaud |
| Created: | Thu Jan 23 1992 |
| Last Modified: | Thu Jun 05 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1060 |
| Total number of notes: | 10477 |
Do you think I have any grounds for filing a complaint for losses
to someone?
I just went thru a transfer of brokers from Fidelity to National
Discount Brokers (NDB). I chose to transfer the accounts based
on the NDB literature which said I "would not loose trading time" and I
would receive my first NASDAQ trade for free. Sounded good to me.
Filled out all the paperwork and sent it in. It took over 10 business
days, and guess what? To my surprise Fidelity froze my trading in my
account this week on Monday. In the meantime, one of my stocks (BSMT)
starts plummeting, and I cannot sell. I could have sold in the upper
$2 range, but now had to wait until today to sell at market currently
at 2.25. I lost a good $500 plus because my account was frozen.
Each day I called NDB for my account status. I complained about not
being able to trade, and how I was under the impression I would not
loose trading time, to which the rep says to me "You always will loose
a few days when transferring brokerage accounts".
Live and learn, and let this be a heads-up to anyone else transferring.
I blame Fidelity for freezing my account. They were holding my assets
and would not let me trade. I blame NDB for misleading me in the
literature. I will get over it, but, if I have legitimate grounds to
file a complaint, I will.
Any opinions? Thanks, Mark
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 952.1 | Tell it to the SEC | EVMS::HALLYB | Fish have no concept of fire | Thu Dec 14 1995 09:59 | 39 |
> account this week on Monday. In the meantime, one of my stocks (BSMT)
> starts plummeting, and I cannot sell. I could have sold in the upper
> $2 range, but now had to wait until today to sell at market currently
> at 2.25. I lost a good $500 plus because my account was frozen.
The fact that you missed the opportunity to sell doesn't mean you WOULD
have sold. To a judge, this looks like whining. (But *I* believe you :-)
> days, and guess what? To my surprise Fidelity froze my trading in my
> account this week on Monday.
I think Fido are within their rights here. Asking them to transfer your
account while trade settlement is pending is asking them to assume risk.
Hence, a freeze to prevent problems.
> on the NDB literature which said I "would not loose trading time" and I
> would receive my first NASDAQ trade for free. Sounded good to me.
It seems to me you have ground to file a complaint with the SEC based
upon false and misleading advertising. Of course you will probably
alienate your new brokerage house, so have to take that into account.
But this is asking the SEC to discipline NDB, which probably won't get
you any money. On the other hand, NDB might have to pay you off as part
of a settlement agreement with the SEC, should things go your way.
This provides an interesting ploy for unethical investors. Suppose your
favorite company, WXYZ, is going to announce earnings on Tuesday the 19th.
On Monday you initiate an account transfer to NDB or some other broker
who claims you won't miss any trading time. If WXYZ stock has a
positive reaction to the Tuesday announcement then you've no problem.
But if WXYZ plummets on bad news then you sue your broker for not
allowing you to trade. Assuming you can get paid off as with BSMT above,
this gives you a risk-free way to handle those earnings announcements
or any other news event that may cause your stock to drop.
I do not advocate such activity even if the broker ads are misleading.
It's just an observation.
John
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| 952.2 | NBD's literature scared me, I stayed away from them | 2155::michaud | Jeff Michaud - ObjectBroker | Thu Dec 14 1995 11:09 | 13 |
> $2 range, but now had to wait until today to sell at market currently > at 2.25. I lost a good $500 plus because my account was frozen. It's recovered from that day low and is now up (when you said it was at 2.25 I was ready to buy some more, maybe we could even of entered into agreement for me to buy your shares at 2.25 :-) Symbol: BSMT (FILENES BASEMENT CORP COM) Last Trade: 2.4375, Change 0.0625 (2.63%) at Dec 14 10:44:43 Bid/Ask: 2.4375 / 2.5625 (spread 0.1250) Low/High: 2.2500 / 2.5625 (spread 0.3125) 52 Week Low/High: 2.1875 / 6.6250 (spread 4.4375) Volume/# of Trades: 115300 / 66 (1746 shares/trade) | |||||
| 952.3 | Waterhouse Transfer was E Z | MSBCS::MERCIER | Thu Dec 14 1995 12:30 | 12 | |
I just transferred my PaineWebber account to Waterhouse. I really like
the guys at Waterhouse and dilike my "very expensive" couldn't pick a
winner in a two horse race broker at PaineWebber. Fitting name, they
caused me Great Financial Pain. But that's another story.
The only fiasco that I ran into was that Painewebber wouldn't transfer
my account unless I gave them $50.00!!! I was so disappointed with them
I just wanted them gone and shelled out the money. Quick and Painless
after that...
Now I've only myself to blame for lousy stocks.......
Bob M�
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