No. of Recommendations: 2
I've been using a margin account but recently I opened a cash account. I was hit with a 90 day penalty on the cash account because I didn't wait 3 days for the sale of previous stocks to settle before purchasing new stocks.

It looks to me like your broker screwed up on Regulation T (http://www.sharebuilder.com/sharebuilder/help/topic.aspx?Cat...). I dumped my last broker and moved to TDAmeritrade because that last didn't understand the reg. If you sell A, you can, in fact use the proceeds to buy B at any time, including on the day you sold A. You just can't then sell any part of B before the sale of A has settled, three days later. I do this all the time in my cash accounts at TDA.

Note: I'm not a licensed broker, nor do I play on on the radio.

Eric Hines
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