What happens to the stocks I own if the broker closes?
Dave asked:
With the way things are sounding across various stock broker services, I am loosing confidence in my broker. I have several stocks with a particular broker. I f they close down what happens to the stocks I own? How do I regain or at least get to those stocks?
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With the way things are sounding across various stock broker services, I am loosing confidence in my broker. I have several stocks with a particular broker. I f they close down what happens to the stocks I own? How do I regain or at least get to those stocks?
January 6th, 2010 at 10:07 am
You transfer your account or in a wort case SIPC insures your account. scottsmylie
January 7th, 2010 at 6:41 am
The best option would be to transfer your money prior to the broker closing. However, here is a possible safeguard for you. Most smaller brokers are “introducing brokers” only. That means they work directly with you, but all trades are actually handled by a “clearing broker” The clearing broker also usually holds your assets. There are several large and independent “clearing brokers” in this country and their sole purpose is to provide back room services and hold assets for small brokers. These services are very regulated and costly for mst small brokers to offer out of their own office.
You can also go out to the NASD website and perform a search on your broker to see if he is in good standing with the profession. Homeslice
January 10th, 2010 at 4:28 am
Any share/stock you have are under your name and not the name of your broker. It does not matter what happens to you broker, the shares are yours unless he defrauded you and put the shares under his name. You can open an account with another broker and transfer the shares without selling them (to avoid paying tax on capital gain). Otherwise if anything happen to the broker you can contact the company and asked for their transfer agent and have them transfer the shares to your new broker. crapaudblanc
January 12th, 2010 at 5:56 pm
I suggest you open a scottrade account and cancel your small broker who is screwing you from behind.
scottrade is only $7 per trade. Billybb