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Subject:  Free riding Date:  3/12/2004  4:08 PM
Author:  Arcangle90 Number:  1327 of 2244

Ameritrade was fined $10 mil for free riding. From what I've found out, free riding is letting customers with cash accounts buy and sell a stock with the "unsettled" proceeds of another stock. Could someone explain this to me in a little more detail. For some reason I'm having trouble with the concept.

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