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Author: TMFSandman Big red star, 1000 posts Feste Award Nominee! Old School Fool Coverage Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2209  
Subject: Re: Question about "free ride" Date: 10/4/2010 10:11 PM
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Brokers assume a first-in, first out order when selling shares, so if you sell 100 of the 150 shares you own you would be selling the 100 shares you bought two weeks ago, so you won't contribute to a free ride situation.

Secondly, even if you sold all the shares (even the shares you bought today), most brokerages still let you use those funds to buy shares in a new company in a cash account. The free ride situation would not occur unless you wanted to sell shares in the new company you just bought before the sell trade of the previous stock had settled. So you could sell all your shares if you wanted to, immediately buy shares in a new company, but would then need to wait the 3 days for the sell trade of the previous stock to settle before you could sell the new stock.



Mike
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