The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  https://boards.fool.com/quotbut-for-example-1-you-have-386-in-your-22087747.aspx

Subject:  Re: How much is my acct worth to a broker Date:  2/17/2005  10:07 PM
Author:  Crosenfield Number:  44699 of 100452

"But, for example.

1. You have $3.86 in your brokerage account and 1 share of BrkA.
2. You sell BrkA and immediately buy $90K worth of SPY.

Is this a problem with a cash account? "

No, assuming BRK.A is trading above $90000 at the time. All IRAs are cash accounts. I've done this sort of thing several times--sell most of the assets in the account and buy something else the same day.
But the broker may have rules against daytrading, and may require that before you buy a stock, sell it, and buy the same stock again on the same day, you must have enough cash in the account to cover both buys.
Best wishes, Chris

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us