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Emphasis on “margin account” and “your stocks.” You do realize that when you’re using margin, you’re using money borrowed from the broker, so whatever is in your margin account isn’t really yours to begin with. Simple solution, don’t use margin.
And if you have a cash basis account your holdings wouldn’t won’t by rehypothicated
I thought the brokers were making money on Zero Commission deals by giving me "poor execution", skimming fractions of pennies on every share, Office Space style. I mean, I knew I was paying the piper.
I thought the brokers were making money on Zero Commission deals by giving me "poor execution", skimming fractions of pennies on every share, Office Space style. I mean, I knew I was paying the piper.
if you enter a limit order that’s your price commission paying or not
I've never heard this before. Sounds conspiracy-ish to me. My money is digital in my bank, doesn't mean it's the bank's money. FDIC insures it up to a certain dollar amount.
Also, if that's true, what about real estate? I don't physically hold it either, does that mean some banker can just take my house?
Are you physically in your house? Do you own firearms, or any weapon for that matter? then yes you are physically holding your property.
At 24 min she says it out loud, retail investors are simps, chattel in what looks like a multi-trillion dollar Ponzi foisted by the big banks and Wall Street firms. Don’t worry though, the music is still playing and even if it stops, that SIPC insurance will protect you…
Your getting the convenience of stock trading from home on your laptop, with no fee's to boot. I don't care how they make their money, it's worth it to me.
Now if the whole system falls apart then yes maybe i will lose my shares. But then again if it all falls apart I will be far more concerned about if I have enough beans and ammo then what happened to my stocks.
Your getting the convenience of stock trading from home on your laptop, with no fee's to boot. I don't care how they make their money, it's worth it to me.
Now if the whole system falls apart then yes maybe i will lose my shares. But then again if it all falls apart I will be far more concerned about if I have enough beans and ammo then what happened to my stocks.
How does that work out in the larger sense? If someone lives in a neighborhood run by Mafia thugs who steal and kill, it’s OK to ignore their crimes if that person is not directly bothered by thugs? Nihilism is the answer, the way forward?
Maybe that’s the way those happy, “grass fed” cows feel right before the big truck pulls up.
Emphasis on “margin account” and “your stocks.” You do realize that when you’re using margin, you’re using money borrowed from the broker, so whatever is in your margin account isn’t really yours to begin with. Simple solution, don’t use margin.
The OP doesn't even understand what margin or broker means. He's just so proud of himself thinking him and some youtuber figured out some scam in the system.
”Investors can now trade stocks for free through most brokers. But how do brokerages make money if they’re waiving commissions? A deep dive into the commission-free trading movement reveals various business activities that build profits, sometimes to the disadvantage of clients.”
Rehypothecation occurs in a margin account when the broker-dealer uses an asset—stock securities in this case—as collateral to fulfill their own obligations or interests. In other words, they can fund their own market bets or borrow money from a bank, using your stocks as collateral if things go haywire. This practice tends to work well in quiet times. On the other hand, it can have disastrous consequences when the financial system is under stress.”
When the service is free, the product is you. DTCC and the SEC turn a blind eye to naked shorts, failures to settle, and a host of other malfeasance which are funded by “liquidity” from retail stooges. But hey, anything goes these days.
Okay. So during the great financial crisis and covid crash did anyone lose their money in these accounts from what you described??? Did anything you describe happen? I had my money in etrade and nothing of the sort happened. Although I wasn't in margin accounts. I hope you realize if you have all your money in gold bars hiding in your closet or buried in your back yard that can be stolen as well. I hope you also realized that money stored in bank accounts is loaned out by banks for mortgages etc, so that isn't even setting there for your to take out. There is no 100% risk free way to store your money.
Okay. So during the great financial crisis and covid crash did anyone lose their money in these accounts from what you described??? Did anything you describe happen? I had my money in etrade and nothing of the sort happened. Although I wasn't in margin accounts. I hope you realize if you have all your money in gold bars hiding in your closet or buried in your back yard that can be stolen as well. I hope you also realized that money stored in bank accounts is loaned out by banks for mortgages etc, so that isn't even setting there for your to take out. There is no 100% risk free way to store your money.
No, my accounts didn’t lose any “money”, but that’s not my point. Sure, we are all covered by SIPC’s notional “insurance”, even though they would likely require a bailout if a financial crisis required significant payouts. The point is the securities assets of retail investors are treated as a slush fund. When Black Rock buys $1B of IBM shares, that transaction is treated differently than when Ma Kettle buys 100 shares of IBM for her IRA. One is an actual transfer of shares and voting rights, the other is an entry on a spreadsheet (cynically called the “black hole” at DTCC). It’s not the way “fair and efficient” markets are supposed to operate under the law.
No, my accounts didn’t lose any “money”, but that’s not my point. Sure, we are all covered by SIPC’s notional “insurance”, even though they would likely require a bailout if a financial crisis required significant payouts. The point is the securities assets of retail investors are treated as a slush fund. When Black Rock buys $1B of IBM shares, that transaction is treated differently than when Ma Kettle buys 100 shares of IBM for her IRA. One is an actual transfer of shares and voting rights, the other is an entry on a spreadsheet (cynically called the “black hole” at DTCC). It’s not the way “fair and efficient” markets are supposed to operate under the law.
And if they weren't treated as a "slush fund" as you describe it, they would have to make a profit by having large trading fees. They're a business meant to make a profit. They will get their profit one way or another.
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