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Conference nyoss1::market_investing

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

952.0. "Brokerage Transfer Woes" by USDEV::CLEMENT (Smells like Nirvana) Thu Dec 14 1995 12:30

    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.RTitleUserPersonal
Name		DateLines
952.1Tell it to the SECEVMS::HALLYBFish have no concept of fireThu Dec 14 1995 12:5939
>    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
952.2NBD's literature scared me, I stayed away from them2155::michaudJeff Michaud - ObjectBrokerThu Dec 14 1995 14:0913
>     $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)
952.3Waterhouse Transfer was E ZMSBCS::MERCIERThu Dec 14 1995 15:3012