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Author: mac750 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 4956  
Subject: Response from BuyandHold Date: 4/18/2001 7:37 PM
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Here is the response I received via e-mail today from BuyandHold:

Dear Mr. Rosa,

Thank you for contacting BUYandHOLD. I appreciate the opportunity to respond
to your email.

Currently, BUYandHOLD Securities Corporation has approximately 210,000
accounts. We remain highly optimistic about the future of our firm as we are
in discussions with our investors to obtain the additional financing needed
for us to reach profitability. Although this funding has not yet been
attained, these discussions are positive and we are anticipating a positive
response shortly.

In the event of the firm's insolvency, BUYandHOLD Securities Corporation is
a member of SIPC (Securities Investor Protection Corporation). SIPC provides
protection in the event of losses resulting from a brokerage firm's
insolvency or liquidation. SIPC provides protection of up to $500,000
($100,000 of which covers cash balances). If BUYandHOLD Securities
Corporation were ever to become insolvent, each customer's account would be
protected up to $500,000 ($100,000 of which covers cash balances). Customers
would then have the option of either transferring out their shares to an
outside brokerage firm with no additional charge or to have their shares
issued to them in certificate form. You would be notified as soon as
possible if the situation did arise.

We thank you for your continued support and do consider you to be a valued
customer. We look forward to assisting you in reaching your long term
financial goals.

If you should have any further questions, I encourage you to contact me via
email (mdunn@buyandhold.com) or at 1-800-646-8212, Monday through Friday,
8:00 am to 6:00 pm, EST.

Sincerely,

Mary Ellen Dunn

BUYandHOLD Securities Corp.

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Author: mac750 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1356 of 4956
Subject: Re: Response from BuyandHold Date: 4/18/2001 7:41 PM
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I'm sticking with them! And my investment club will do the same.

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Author: RJS100 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1358 of 4956
Subject: Re: Response from BuyandHold Date: 4/18/2001 9:32 PM
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This is good news.
Maybe they'll receive new funding and all will be well.
And if they go under, I don't foresee big hassles getting our shares out, based on what they stated.

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Author: MtgMaker One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1360 of 4956
Subject: Re: Response from BuyandHold Date: 4/18/2001 10:01 PM
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I will be keeping my Investment club with them as well.

MTG

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Author: 2Leos Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1361 of 4956
Subject: Re: Response from BuyandHold Date: 4/18/2001 10:25 PM
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Looks like I'll be sticking with them too. I've spent part of my day today looking at Sharebuilder, FinancialCafe and Ameritrade, and although I'm sure they're fine companies, they simply don't offer me what B&H does. So, I will continue to support them as they let me invest the way I want to.
I will, however, persist with my wish list <g> that they:

1. Allow users to download to MS Money or Quicken, and

2. Allow us to use credit catds to charge purchases. Before TMF jumps on my back, I use rebate cards exclusively and charge everything -- even my rent!

3. Oh yeah, just because someone else pointed it out, I'll vote for BRK.A&B as well.

Good luck to us all!

- D

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Author: savant2020 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1362 of 4956
Subject: Re: Response from BuyandHold Date: 4/18/2001 10:41 PM
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I am going to stay with Buy and Hold too. I don't want to have to switch to some other broker unless I have to. They have made investing quite fun and easy.
I wish we could help them out by doing something. I guess we help by trading on.
savant2020

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Author: Cameran Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1363 of 4956
Subject: Re: Response from BuyandHold Date: 4/18/2001 10:45 PM
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Woohoo! This is good news so far. I'm going to give customer support a call tomorrow morning and see if I can't get some more information. I will definitely report back in tomorrow if there is any new information.

This letter has made me feel a bit more secure. I was holding off on putting in a buy order, but now I think I will.

Thanks for posting the letter.

Foolishly Yours,
Cameran

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Author: Adenovir Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1364 of 4956
Subject: Re: Response from BuyandHold Date: 4/18/2001 10:58 PM
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I've been with B&H since July 2000 and have no complaints. The past few days of posts as well as the financial statement had me worried, but with the SIPC protection as stated in the letter, I feel better. If they do go under, even if it takes some time for my shares to be transfered to another broker, I don't mind, I wasn't planning on trading them anyways for 5 or 10 years. I plan to hold on, and accept what comes, you won't get a better deal than B&H anywhere else!

Adenovir

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Author: CowDad Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1365 of 4956
Subject: Re: Response from BuyandHold Date: 4/18/2001 11:42 PM
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This letter has made me feel a bit more secure. I was holding off on putting in a buy order, but now I think I will.

Other than the part about having 210,000 accounts that letter did not say one word that we already didn't know. Our accounts getting wiped out--nobody's even brought that up as a real possibility, at least not that I've seen. The problem for me is that I don't know how much of a headache it will be, and what anxiety I might feel if the website goes down and nobody answers the phones at the place.

The 210,000 tells us they get at least $630,000 in revenue every month, or $7.5M a year--if they haven't had a whole bunch of cancellations recently. We might be able to safely move that $7.5M figure up to $11M--if we were to assume that half their customers spend $6 a month. IF, IF, the 11.5M figure is correct or close, then it looks to me like it could be less of a going concern issue.

The reality to me appears to be that there's little chance of our getting wiped out, but that going concern is also a reality, a major one. And a headache over this is something I want to avoid, even if it costs me some money. I'm leaning toward selling out on Friday, keeping the account open and letting them charge me the $9.99 a month fee until things become clearer. We haven't gotten any real answers from anybody about what a headache this might be.

I guess I'll go on some of the other boards and read about other discount brokers this weekend. I think I'm leaning toward Ameritrade though. I went to eTrade today and spent about 10 minutes at the page and never could find out how much they charge for a trade. I guess they wanted you to set up the account first. Well, they lost a customer. At this point, I think I'd like to go with the biggest name, which is eTrade, but I'm not doing business with some outfit that is not forthcoming about charges.

This whole BUYandHOLD deal makes me feel kind of sick. I am not going to write them and tell them I'll gladly pay higher fees though. I'm going to keep the account open, but I'm not going to tell them I think they should charge more.

CowDad

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Author: abbiesdad Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1367 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 8:22 AM
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"The 210,000 tells us they get at least $630,000 in revenue every month...."

CowDad,

Not necessarily true.

I have an account with BuyandHold but I pay zero dollars per month, unless I make a buy or sell. Prior to the new fee structure, those of use who had accounts were grandfathered in. I pay no inactivity fee and $2.99 for buys/sells; $1.99 for second and subsequent trades in the same window.

I'm sure others are grandfathered in also. How many, I wouldn't venture a guess. I'm not sure this number would made a significant difference though.

Oh, by the way....I am not closing my account.

Ralph

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Author: sfringer One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1368 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 8:32 AM
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Ralph,
I too am one of the grandfathered in folks... been with B&H since Dec. 1999. So, I'm not paying anything in months I don't buy either...

Scott

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Author: KentuckyDuck One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1369 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 8:57 AM
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B&H quote regarding insolvency: "Customers would then have the option of either transferring out their shares to an outside brokerage firm with no additional charge or to have their shares issued to them in certificate form. You would be notified as soon as possible if the situation did arise." <snip>

This is reassuring to me. We've just recently joined B&H and have 5 accounts now with them (ROTH IRA for me & spouse, a joint acct., and an UGMA and Ed. IRA for our daughter). So, I'd be looking at $250 to bail out.

If SIPC protects us from the "transfer out" fee as stated above, then it would be IMHO unFoolish to bail now. Granted, it might take months to clear out the accounts, but what the heck, this is all stuff we're not going to touch for 20 years anyway, right ;-)

KyDuck


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Author: Tuni Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1371 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 9:03 AM
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I, too, am hanging in. This company has been responsive to my needs, their fees are better than anyone else's, their customer service is pretty good - no better than that, very good. My account is insured under SIPC until I reach $500k (ha - with this market?) and I feel comfortable where I'm at. Financial disaster has as much chance of hitting any and all other discount brokerages in today's financial environment, and I don't see that I'm in any more jeopardy with them then anyone else.

I'll hang in, too!
tuni

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Author: BandHPatWork Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1374 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 9:51 AM
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CowDad wrote "Our accounts getting wiped out--nobody's even brought that up as a real possibility, at least not that I've seen. "

Gently, I suggest you go back to Monday of this week and slowly, re-read each and every post. There must be a dozen - I wrote 3 myself threaded RELAX - which clearly show nobody's account is going to get "wiped out."

Pleas do a little mor DD before alarming readers unnecessarily. it does nobody any good, unless of course you are a plant for another brokerage or competitor to B&H. I hope that is not your intention.

B&HPat

PS Added to some previous "scary" popsts, this one is serious enough, for me anyway, to P-Box you for a time.

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Author: CowDad Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1375 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 10:19 AM
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Pleas do a little mor DD before alarming readers unnecessarily. it does nobody any good, unless of course you are a plant for another brokerage or competitor to B&H. I hope that is not your intention.

I'm still very concerned about possible headaches. But as far as promoting another online brokerage, I don't think so. I have said several times that I'm leaving the account open and letting BUYandHOLD charge me the $9.99 fee a month even if I sell everything.

I think most all of us here hope BUYandHOLD can make it.


CowDad

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Author: zebo25 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1376 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 10:30 AM
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While I would be concerned as well about the headaches
of a collapse, my (and everybody else's) accounts are
fine. It is simply silly to speak otherwise.

Also. The way I look at it, the stocks I buy through
B&H are to be held anyway. If it takes a few weeks to
recover the certificates, so what? I'll just transfer
them to another brokerage where I will continue to
buy and hold anyway.


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Author: dianemmalucy Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1377 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 10:33 AM
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I have been following all the posts regarding BuyandHold. As an account holder, I am also concerned. I am not decided on what I will do yet. I wanted to add a comment about the SIPC issue. I recall reading a New York Times article last fall (I recall it being mentioned on a Motley Fool board, but I do not remember which one)which discussed SIPC. The gist of the article was that SIPC makes it very difficult for the investor to recover his investment if a brokerage closes and that the protection provided by the SIPC was not the same or as good as the provided by the FDIC for bank accounts. The story talked of a man who had to file suit to recover his investments when his brokerage closed because the SIPC would not pay out. The SIPC was arguing that the man had made his checks payable to a clearing house for his investments which is not the brokerage so they did not have to pay out on it. Since reading this article, I have had concerns about brokerages but pushed it to the back of my mind. The recent events has started me thinking about this again. I know that I make my checks out to BuyandHold, so I figure the SIPC could not use the excuse that was mentioned in the article.

I am sorry for the long post. If anyone recalls the article or more info, please let me know.

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Author: Gailws One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1378 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 10:50 AM
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Thanks so much for posting your reply from BuyandHold. I have been lurking on this board for a while and had just opened an account with BuyandHold just before their financial statement/audit was sent out. I had already sent a stock certificate and transferred some other stocks to my account, and was starting to worry.

This reply has quelled some fears. I plan to stick with them for now.



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Author: feedmepasta One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1380 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 11:13 AM
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My last thoughts on all this are that it is probably worth waiting things out because buyandhold.com has provided us with a great, not to mention incredibly cheap, way to invest for the long-term. That said, I'd recommend that everyone brace for some sort of fee increase in the next few months, and at that time I think everyone should examine those new fees are and determine if buyandhold is still the best deal for them. I'm guessing whatever kind of increase they implement, it will still be a good deal, at least lets hope <gg>.

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Author: CowDad Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1381 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 11:56 AM
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While I would be concerned as well about the headaches
of a collapse, my (and everybody else's) accounts are
fine. It is simply silly to speak otherwise.


What is silly is all the denial and wishful thinking that people are taking for reality that appears to go on not only here, but in many places in investing circles. But that's the kind of thing that in many cases provides opportunity. Whether or not I wish BUYandHOLD continues to go on or not (and I most certainly do wish it carries on)--that has very little to do with whether they make it or not. I can't wish them into making it.

Some letter from BUYandHOLD that somebody posted had absolutely no new information in it other than the number of accounts and people on this board took that as if it contained some type of compelling information indicating BUYandHOLD was going to make it. It didn't contain any such thing.

We've seen a post here from somebody who said he just "brushes off" things like going concern paragraphs in audited financial statements. Like, unreal. People are going to believe what they want to believe, I suppose, no matter what evidence there is to the contrary. I mean, there are people still in tech funds, people buying Cisco, even though it's clear the tech party is over.

As far as BUYandHOLD goes, there's strong indication that that party is going to end soon. Would you invest in a dot com that lost over $12M last year????

But anyway, keep on with your wishful thinking, though it's going to get you nowhere and will probably even cost you a good bit of money you could otherwise have made. And there are people who are going to take advantage of your wishing.

Also. The way I look at it, the stocks I buy through
B&H are to be held anyway. If it takes a few weeks to
recover the certificates, so what? I'll just transfer
them to another brokerage where I will continue to
buy and hold anyway.


Do you have any idea how this process works? I didn't think so. Just close your eyes and hope it won't be too much of a headache. Visualize that it won't be a headache--maybe that will help.

CowDad


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Author: azriel One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1383 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 12:04 PM
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CowDad, if you are this prone to worry, how can you stand to be in the stock market?

A loss of $12M is a very small loss for a young dot-com. The big ones burn money *much* faster than that and are still able to get credit and sell shares of stock.



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Author: CowDad Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1384 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 12:14 PM
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CowDad, if you are this prone to worry, how can you stand to be in the stock market?

If I'm not sure of it, I don't touch it. I own only two stocks.

When I look at a company, I look at what can go wrong first. And that's how I'm looking at this BUYandHOLD situation. A lot of folks have ranted and raved here about how I've allegedly raised the possibility that we could all be wiped out. That is hysteria. My raising the possibility of major headaches is, for all we know at this point, a very real possibility. It is also a possibility that many people here have a stake in denying. They deny it will be a headache not because they have evidence that it won't be a headache because they don't have any such evidence--certainly, they have not presented any such evidence. If there is any such evidence, believe me, I'd sure like to hear it. But somebody's posting email from BUYandHOLD that contains absolutely no new information--except for the information about the 210,000 accounts--no, I don't see that as a cause for rejoicing--there was nothing new there to rejoice over.

CowDad

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Author: SJsDad One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1388 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 12:36 PM
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Ralph wrote (regarding revenue estimates of $3/customer/month): "Not necessarily true. I have an account with BuyandHold but I pay zero dollars per month, unless I make a buy or sell. Prior to the new fee structure, those of us who had accounts were grandfathered in"

True - or, it could be much higher. I was grandfathered in, but I noticed I was averaging 4 or 5 trades a month ($12-15), so I switched to the $9.99/mo plan. I imagine a lot of the non-grandfathered people also chose that plan.

"Oh, by the way....I am not closing my account."

Same here;)

-Brian



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Author: abbiesdad Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1389 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 12:59 PM
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"True - or, it could be much higher. I was grandfathered in, but I noticed I was averaging 4 or 5 trades a month ($12-15), so I switched to the $9.99/mo plan. I imagine a lot of the non-grandfathered people also chose that plan."

Brian,

Quite right. I had not even thought of that aspect. Duh!!!

Ralph



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Author: mac750 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1391 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 2:15 PM
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BandHPatWork posted:

CowDad wrote "Our accounts getting wiped out--nobody's even brought that up as a real possibility, at least not that I've seen. "

Gently, I suggest you go back to Monday of this week and slowly, re-read each and every post. There must be a dozen - I wrote 3 myself threaded RELAX - which clearly show nobody's account is going to get "wiped out."

Pleas do a little mor DD before alarming readers unnecessarily. it does nobody any good, unless of course you are a plant for another brokerage or competitor to B&H. I hope that is not your intention


Boy do I agree with you! I am amazed at the number of posts that a single person can post on a work day no less. Everyone has vented a little, learned a lot and that is great and it has hopefully helped many. But it sure sounds like this one person is not getting any sleep at night the past few evenings.

Suggestion: If this is keeping anyone awake at night or making anyone monitor this board on a minute by minute basis for breaking news, then maybe it would be best to move to another brokerage firm immediately and set your mind at ease. It is the same for those who buy a stock and cannot sleep at night because they are worried about their money.

If I hear anything further, I will post it....

Until then..

Fool on with B&H...

Mike





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Author: MinnieM One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1392 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 3:14 PM
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Just how would the process work if B&H went under? Do we get certificates for our stocks; and if so, how long would it take to get them? Do our stocks become frozen or locked in at the time B&H goes under so they no longer go either up or down? Or, does our account get closed, everything sold by the insurance co. and we then get a lump sum of money?



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Author: tim2pac Three stars, 500 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1393 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 3:23 PM
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"Just how would the process work if B&H went under? Do we get certificates for our stocks; and if so, how long would it take to get them? Do our stocks become frozen or locked in at the time B&H goes under so they no longer go either up or down? Or, does our account get closed, everything sold by the insurance co. and we then get a lump sum of money?"
Posted By MinnieM

"In the event of the firm's insolvency, BUYandHOLD Securities Corporation is
a member of SIPC (Securities Investor Protection Corporation). SIPC provides
protection in the event of losses resulting from a brokerage firm's
insolvency or liquidation. SIPC provides protection of up to $500,000
($100,000 of which covers cash balances). If BUYandHOLD Securities
Corporation were ever to become insolvent, each customer's account would be
protected up to $500,000 ($100,000 of which covers cash balances). Customers
would then have the option of either transferring out their shares to an
outside brokerage firm with no additional charge or to have their shares
issued to them in certificate form. You would be notified as soon as
possible if the situation did arise."


I hope that answers most of your questions MinnieM.

~T2pac

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Author: MinnieM One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1394 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 3:37 PM
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T2pac:

Thanks for the reply, it was helpful.

However, does someone know if while the SIPC is doing whatever they do are stocks are still alive (e.g. if the stocks I own double in value (or are halved in value) while SIPC is sorting out the mess, will my account refect the change in value?

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Author: tim2pac Three stars, 500 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1395 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 3:42 PM
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"However, does someone know if while the SIPC is doing whatever they do are stocks are still alive (e.g. if the stocks I own double in value (or are halved in value) while SIPC is sorting out the mess, will my account refect the change in value?"



The number of shares you own is the number of shares you own. It is that simple. The value of a stock is only what someone is willing to pay for it. If your question is to whether or not you can look that up your portfolio's value at the B&H website after they've gone under, then the answer I would give is: not likely. But, no one really knows for sure.



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Author: BandHPatWork Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1396 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 3:52 PM
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MinnieM asked what the SIPC pays, or... "will my account refect the change in value? " after a broker tanks.

Minnie, try to think of your stocks as a "car in a locked garage." if the garage owner goes bankrupt, the car is still your property. ditto the stock certificates.

The stock certificate will be sent to you. The only way it won't be sent to you is if you ask for it to be transferred, or a crime takes place.

The SIPC only comes into play if the stock goes missing. E.g., it is converted for someone else's personal use, an embezzlement, or some other adjudicated criminal action. But that is not what is happening here. The money has already been spent and the certificates are safe.

So, not to worry. Your certificates are held under your street name by a really, big bank <;-)

B&HPat


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Author: MinnieM One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1397 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 4:05 PM
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"The SIPC only comes into play if the stock goes missing. E.g., it is converted for someone else's personal use, an embezzlement, or some other adjudicated criminal action. But that is not what is happening here. The money has already been spent and the certificates are safe."

This is a good thing.

So, where do the headaches come in, or are we just talking about some inconviences?



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Author: tim2pac Three stars, 500 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1398 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 4:08 PM
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"So, where do the headaches come in, or are we just talking about some inconviences?"

I believe the headaches are when the company goes under and you want them to send you a certificate or transfer shares to another broker. Alhtough, I really don't see these things becoming a problem, but it is good to be aware of the possibility.


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Author: jetla Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1400 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 4:54 PM
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http://cnnfn.cnn.com/2001/04/19/investing/q_brokers/
very timely article on cnnfn

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Author: CowDad Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1401 of 4956
Subject: Re: Response from BuyandHold Date: 4/19/2001 7:11 PM
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jetla wrote:
http://cnnfn.cnn.com/2001/04/19/investing/q_brokers/
very timely article on cnnfn
<end quote>

Well, the bad news is that our stuff could be tied up for months. The good news is that most of us probably aren't traders, so what does it matter?

The other bad news is that I've looked at other discount brokers today and I can't find a deal that touches BUYandHOLD, which makes me hope all the more they make it. I looked at CharlesSchwabb just now, and they're as high as the real life broker right down the street.

Once again, I'm keeping my BUYandHOLD account and I'm just going to let them charge me the $9.99 a month even if I do sell everything tomorrow or Monday. I've panicked, because of the unknown, but I'm not going to be part of a mad rush that does them in. If every BUYandHOLD customer were to send them a check for $100 tomorrow and that enabled them to make it, I'll bet most of us would still come out far ahead than we would in dealing with another discount broker.

CowDad

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Author: Ringfinger Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1407 of 4956
Subject: Re: Response from BuyandHold Date: 4/20/2001 9:35 AM
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I don't mind them holding onto shares for a bit, but I am concerned with the monthly investments that I make. I would have to do a lot of new account openings to keep my plan moving along. Plus, the other brokers account minimums may keep me out on some of my children's accounts.

I am in a quandry.

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Author: zebo25 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1409 of 4956
Subject: Re: Response from BuyandHold Date: 4/20/2001 9:44 AM
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> What is silly is all the denial and wishful thinking that people are
> taking for reality that appears to go on not only here, but in many
> places in investing

So let me get this straight: because I don't post frenetically
about my concerns like another Chicken Little, I'm engaging in
wishful thinking?

You poor thing, Life *is* scary, isn't it?


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Author: avjo Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1411 of 4956
Subject: Re: Response from BuyandHold Date: 4/20/2001 9:54 AM
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"However, does someone know if while the SIPC is doing whatever they do are stocks are still alive (e.g. if the stocks I own double in value (or are halved in value) while SIPC is sorting out the mess, will my account refect the change in value?"

Go up a few posts to the links and youll see that the answer is:
While the SIPC is sorting out everythign the accounts are not frozen at the value and you can not buy/sell during this period, and if they double you will get that money at the end, but if they get halved then you get half...But, thats cash. If you keep the shares you have the same # of shares as you did before.But you were locked up for some time unable to sell even if you wanted to

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Author: CowDad Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1414 of 4956
Subject: Re: Response from BuyandHold Date: 4/20/2001 10:49 AM
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So let me get this straight: because I don't post frenetically
about my concerns like another Chicken Little, I'm engaging in
wishful thinking?


No, but you sure seem to be making assumptions. How would you figure you'd be included in that group? Did you post anything about how you "brush off" going concern paragraphs? Did you post anything about how sure you are that BUYandHOLD is going to make it?

You poor thing, Life *is* scary, isn't it?

There you go again with more assumptions.

Often, it's not what happens that counts so much as how you react to it.

CowDad



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Author: kellykinney Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1433 of 4956
Subject: Re: Response from BuyandHold Date: 4/20/2001 7:06 PM
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I am not a PollyAnna, but I am NOT overly concerned with the BuyandHold situation. I am more concerned about TMF and its heavy promotion of the site, given its current financial report, however, I can even live with that. In fact, I've been planning to start another DRIP with them this week or next.

My strongest hunch is that if BandH got into a cash pinch where they were just too strapped to go on, they'd merge or allow themselves to be acquired by another discount brokerage. They do, after all, have 210,000 accounts, by their own account, which represents a very large asset that I am sure someone would be willing to buy. In my own past, I have bought and sold pools of loans for a finance company, and at this point, I am looking at this in the same way. The market has its own set of efficencies to handle contingent situations such as a brokerage failure. As I think it was BandHPat who pointed out, those stocks are already paid for, and locked away in a large bank. I am NOT worried that they are just going to mysteriously "disappear." In the end, even if the worst happened to BandH, and another brokerage stepped up to the plate to acquire servicing of the accounts, my experience tells me that the vast majority of it would be transparent to the clients; after all that large brokerage would stand to gain a lot if it could acquire and KEEP those 210,000 accounts. Heck, they might even acquire BandH in toto, infuse it with cash, and keep the same corporate identity, and no one would ever be the wiser if they didn't read the annual report. I've seen stuff like that happen before.

I'm not panicked. The way I look at it, and the way I was taught to look at it, is that if you can't afford to lose it, then you shouldn't put it into equities in the first place. Just some food for thought.

kelly

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Author: tim2pac Three stars, 500 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 1434 of 4956
Subject: Re: Response from BuyandHold Date: 4/20/2001 7:13 PM
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"The way I look at it, and the way I was taught to look at it, is that if you can't afford to lose it, then you shouldn't put it into equities in the first place."
Posted by kelleykinney


What an ignorant thing to say. That philosphy has no bearing on this situation. Investors cna't complain when their securites lose value but they CAN complain if something unscrupolous happens, or if they lose money unnecessarily.

~Tim

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