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From: mcb@styx.UUCP (Michael C. Berch)
Newsgroups: net.invest
Subject: Re: Stockbroker selection, discount brokers.
Message-ID: <17008@styx.UUCP>
Date: Wed, 4-Dec-85 20:20:19 EST
Article-I.D.: styx.17008
Posted: Wed Dec  4 20:20:19 1985
Date-Received: Sat, 7-Dec-85 04:05:38 EST
References: <2267@amdahl.UUCP> <11094@ucbvax.BERKELEY.EDU> <7812@ucla-cs.ARPA> <7824@ucla-cs.ARPA> <11135@ucbvax.BERKELEY.EDU>
Reply-To: mcb@styx.UUCP (Michael C. Berch)
Distribution: net
Organization: Lawrence Livermore Laboratory, Livermore, CA
Lines: 28

In article <11135@ucbvax.BERKELEY.EDU> mazlack@ernie.UUCP (Lawrence J. Mazlack) writes:
> . . . 
> >shop for best margin rates; take personal deliverly of certificates on
> >cash sales, and be very, very careful with orders, credits and debits to
> >account.
> >
> >L. Miller
> 
> Absolutely take delivery. So far this year, there have been 10 broker failures
> (according to yesterday's Wall Street Journal).  Any of them can fail, for
> example, Bache did.  Even if they don't fail, they can and do loose track
> of certificates.
>    ...Larry Mazlack

I can't agree with the idea of taking delivery of certificates. They
are simply a pain to deal with, and when they are in your possession,
you are responsible for loss or destruction.  You are protected in
case of failure by SIPC (Yeah, I know, dealing with anybody after a
default is a ROYAL pain), and otherwise you don't have to WORRY about
the certificates; you have your confirmation of purchase slip and your
monthly statement. [There is really nothing to lose track of; the
actual certificates live in a vault in New York or New Jersey
somewhere and the brokers just trade ownership of them with an online
accounting system.]

Michael C. Berch
mcb@lll-tis-b.ARPA
{akgua,allegra,cbosgd,decwrl,dual,ihnp4,sun}!idi!styx!mcb