Stupid question alert: 1. Apparently, it's possible to buy stock directly from a company, bypassing a brokerage account. Is that practical? The benefit is avoiding a brokerage fraud? I know about SIPC. 2. If you buy a stock directly from a company how do you prove ownership?
Great article found by @realHiltonHart https://www.thebalance.com/rehypothecation-investment-disaster-357232 …pic.twitter.com/DhNztHtw8G
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Hello
@Vanguard_Group@Vanguard_FA, Are accounts opened with your brokerage, by default, cash or margin accounts? Thank you.pic.twitter.com/Po0bFyHLnM
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I like this article quite a bit as well. https://www.nestmann.com/your-money-isnt-safe-in-any-u-s-financial-institution#.VlU8Pt8zaEJ …pic.twitter.com/Yg22R6TT3N
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I called
@Vanguard_Group and@Vanguard_FA and spoke with two representatives (who are usually quite good!), one an entry level and someone who specialized in technical questions. Neither had heard of MF Global nor could they tell me whether customer assets in brokerage...Show this thread -
...accounts could be used as collateral in loans made by other entities.
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What happens when
@Vanguard_Group@Vanguard_FA lends its customers' securities to an entity shorting the stock and that entity goes bust? https://institutional.vanguard.com/VGApp/iip/site/institutional/researchcommentary/article/InvComVIPSSecLending&SYND=RSS&Channel=RI …pic.twitter.com/SnhWpoMORA
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End of conversation
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Wow. I have looked into the security of my broker in “worst case scenarios”. Apart from I believe temporarily freezing some accounts during 2008 crash, it appears to be relatively sound. I had to specify, though, that I want my cash kept as cash and not auto-placed in moneymarket
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