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From: hollombe@ttidcc.UUCP (The Polymath)
Newsgroups: net.invest
Subject: Re: Stockbroker selection, discount brokers (taking delivery)
Message-ID: <50@ttidcc.UUCP>
Date: Fri, 6-Dec-85 13:57:02 EST
Article-I.D.: ttidcc.50
Posted: Fri Dec  6 13:57:02 1985
Date-Received: Sat, 7-Dec-85 17:14:32 EST
References: <2267@amdahl.UUCP> <11094@ucbvax.BERKELEY.EDU>
Reply-To: hollombe@ttidcc.UUCP (The Polymath)
Distribution: net
Organization: The Cat Factory
Lines: 31
Summary: 

In article <17008@styx.UUCP> mcb@styx.UUCP (Michael C. Berch) writes:
>
>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 speaks a man who's probably never had a broker go belly-up on him.  I
have and I can tell you it's more than a pain.  It's expensive.

When a broker goes into bankruptcy it can take the  receivers  _months_  or
even  _years_  to  sort out who owns what on their accounts.  While they're
doing that you have _no access to your stocks at all_.  If the price  of  a
stock  starts  to  fall and you want to sell you're out of luck and there's
_nothing_ you can do about it.  All you can do is watch your assets dwindle
while the lawyers and bean counters argue over which ones are really yours.

I _always_ take delivery of my certificates.  As for  safety,  that's  what
safe  deposit  boxes are for (where do you think brokers keep them?).  Cost
of the box is even tax deductible when used for this purpose.

-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_-_
The Polymath (aka: Jerry Hollombe)
Citicorp(+)TTI                    The more I work with C, the more I
3100 Ocean Park Blvd.             appreciate the simple elegance of
Santa Monica, CA  90405           FORTRAN.
(213) 450-9111, ext. 2483
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