Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/13/84; site cadsys.UUCP Path: utzoo!watmath!clyde!burl!ulysses!gamma!epsilon!zeta!sabre!petrus!bellcore!decvax!tektronix!zehntel!vlsvax1!qantel!intelca!cadsys!ekwok From: ekwok@cadsys.UUCP (Kwok Ed) Newsgroups: net.invest Subject: Re: Re: M-L CMA info request Message-ID: <178@cadsys.UUCP> Date: Tue, 22-Oct-85 20:28:10 EDT Article-I.D.: cadsys.178 Posted: Tue Oct 22 20:28:10 1985 Date-Received: Sat, 26-Oct-85 05:27:49 EDT References: <1723@akgua.UUCP> <109000007@ima.UUCP> Reply-To: ekwok@cadsys.UUCP (Kwok Ed) Organization: Intel, Santa Clara, Ca. Lines: 41 Summary: In article <109000007@ima.UUCP> johnl@ima.UUCP writes: > >It's true, safekeeping of stock certificates is a standard service provided >by every broker for free, including discount brokers who charge half of >what M-L does for each purchase or sale. Ditto a free checking account >from any bank around, if you have substantial assets in that or other >accounts. I gather that M-L charges something like $2.00 apiece if you >actually want your checks back. Is that true? > >John Levine, ima!johnl I will hesitate to call it a service. They don't "safekeep" your stock certificates; intead, the stocks are registered in "street name" or in other words, their name. They get to lend it out to people who short the stock, charging a "rent" for such use. Also, brokerage houses also "makes market" and keeps an "inventory". Sort of create stocks by a stroke of the pen; they will sell you stock from their inventory, if their trading desk think the stock will go down - when they maintain a "negative inventory" position - in other words, you may get to buy what they short. You may find yourself at the disadvantaged end of the "bigger sucker" theory. Brokerage house don't provide the service out of the kindness of their hearts, that poor souls may lose their certificates if they are not careful. -- So there ... Disclaimer : Why do a need a disclaimer? All opinions above are mine and nobody else's. So if you would please step outside ... Edward C. Kwok Intel Corp., Santa Clara, CA 95051. (408)-987-8080