stern@tilt.FUN (12/06/85)
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As for Rose and Company, I had nothing but problems with them.
(1) They screwed up an order to sell a stock that was dropping
rapidly (it was a limit, GTC order). It was never executed
(2) They did not credit any interest on the cash balance in my
account until I called them and made them go through their records
in detail. This was not an insignificant amount of interest.
(3) I invariably found the customer service reps to be rude and
often incompetent.
(4) After closing my account, I got a statement the next month,
which showed a $2.07 credit balance. It seems that they did not
close my account on the day I called (which is a no-no) but waited
two days, and in that time the cash balance earned $2.07 interest.
Instead of tacking it on the the balance due me, they held it in
account. It was quite a surprise getting a statement with
Opening Balance: 0.00
Closing Balance: 2.07
When I asked why this happened, I was told that the computer
saw the credit balance, and accrued the interest for those two
days. I asked why it didn't just adjust the balance when the
account was closed, and I heard one of my all-time favorite
"computer did it" lines:
"Our computer can't do that"
I've heard of money creation before, but not like this. After
two more phone calls, I got them to send me another check and really
close out my account this time. Two months later, I'm still getting
junk mail from them.
I now have my account with Schwab. There are lots of advantages:
(1) The office is two blocks from mine. I can walk in there, read
the Wall St Journal or Barrons over lunch, play with the Quotron,
or see what other news they have sitting out.
(2) I have personally met all of the people at the trading desk
and they know me by name and sight.
(3) With the Schwab 1 account, I get free checking and VISA "access"
card. A good deal in anyone's eyes, I would think.
(4) They don't suffer from brain-damaged software problems -- interest
is credited daily instead of monthly, for one example.
--Hal Stern
Princeton University
{ihnp4, allegra, seismo}!princeton!flakey!sterncopp@petrus.UUCP (12/08/85)
There are two issues here:
1) Whether to register the shares in street name or in your name
2) If the shares are registered in your name, whether or not to
take delivery of the stock certificates
I (1) register in my name, and (2) take delivery. I register in my name
mostly because I take delivery, but there is a side benefit--if you
register in your name then you can sign up for dividend reinvesting.
I do this for all long-term purchases. You don't have to deal with
quarterly dividend checks (and you don't fritter them away).
AND, you are entitled to make additional investments paying only
very low commission.
A drawback of dividend reinvestment is that the tax calculations
are more complex when you sell.
The drawbacks of taking delivery include risk of loss
(although as registered securities they can be be replaced)
and slightly more hassle when you want to sell something.