Direct Registration

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goldenbear
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Direct Registration

Direct Registration...

Sinclair has been talking about this for quite some time. Other than that I haven't heard much elsewhere.

I don't have any experience with this but thought there might be some wisdom here in Turdville. Seems like it might be worth the trouble considering MFGlobal. Would be a shame after sitting through all the lows to have the shares vanish just when they take off.

Any advice?

Edited by admin on 11/08/2014 - 06:19

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Chance
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Direct Registration

I have been looking for some advice too. I raised the question a few days ago, but didn't see any replies. This is a very important issue. I' m glad you started this thread. Td Ameritrade is not saying yes on direct registration as of yet. I have only emailed them. We really need to do direct registration or take delivery of certificates at the very least. Tempted to go Barnhardt and just quit the system...

If anyone had luck on doing this please report your success. Thanks guys! Let's keep this thread alive.

GoldMania3000
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Ricul Rule on direct Registration

https://cc.callinfo.com/cc/playback/Playback.do?id=6mqc8k

Posted on their web site. He addresses it from Global/Sprott perspective. 

T
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I read a little about it

I'm not well versed on it by any means, but having read  the explanations  of these options for  stock registration...... left me with the impression that   its 'safer' to hold your stocks under 'direct registration'  But the down side is that  if you need to buy or sell Quickly...that may not happen . some companies only allow selling their stock once a week or once a day for example,under their  registration plan.... or another example is ,if you decide to sell a stock you are registered with.... you might have to make a phone call to your broker, who then has to call your stock company, to let them know you want to sell the stock, and then they say ok, and then  your broker does the transaction for you....something like that. It complicates the process of  buying and selling a stock and  ruins any kind of speedy timing . It all sounded to me like it was riskier    for not being able to  sell (or buy)   through my own   fast mouse click, instant decision timing, thru the custodian account I have .  Will Schwab, or TDAmeritrade, become the next MFGlobal....   or will the government 'confiscate '  our IRA or 401 k  like   some worry about? who knows. 

But I like the idea of being able to buy and sell stocks immediately   with  my choice of timing. and unless I'm mistaken  about direct registration,or owning in posession the stock certificate....(which you then have to mail back to close out your position,do I have that right?) ....speed of liquidation is very important . and you only get that by  working thru the  custodial account  system. But as I say, these are my impressions from having read thru the stuff one time, and its possible I'm misunderstanding something. or not.  the other thing   about the fearful risks  of the 'Custodian' account...MFGlobal  was about  futures........ If youre talking about your IRA  account....you cant trade futures in an IRA account, so its not an issue. In my IRA trading account...I cant do options, futures, or day trading,and I have no margin to maintain...its not allowed in an IRA account. Its simply buy a stock , sell a stock,   take a distribution.

Chance
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More reasons to protect ourselves

Here is a recent comment on SIPC from http://www.jsmineset.com/

Regarding Jeff Berwick’s article, "Who Really Owns Your Gold Stocks?," it is important for JSMineset readers to understand the limitations of SIPC protection. Page four of the booklet “How SIPC Protects You” says, "Customers of a failed brokerage firm get back all securities (such as stocks and bonds) that already are registered in their name or are in the process of being registered."

I asked SIPC specifically if securities held in "street name" are considered to be registered in the name of the customer and thus eligible for complete protection. SIPC replied:

"In a liquidation proceeding under the Securities Investor Protection Act ("SIPA"), customers of a failed brokerage firm first get back all securities that are already registered in their name or are in the process of being registered, these are called "customer name securities." Customer name securities are negotiable only by the registered owner.

Securities held in "street name" are not considered customer name securities. In a SIPA liquidation proceeding, after the return of customer name securities, the remaining customer assets make up the "fund of customer property." The fund of customer property includes all customer securities held in "street name." The fund of customer property is divided on a pro rata basis with funds shared in proportion to the size of claims. If securities are still missing after the pro rata distribution, the customer would then be entitled to the coverage provided by SIPC, up to the statutory limit."

The SIPC brochure is available for download here: http://www.sipc.org/how/brochure.cfm

I could elaborate on discussions I had with SIPC, which raised additional red flags, but the above should be enough to encourage anyone who is serious about protecting him or herself to take action.

Best Wishes,
CIGA Paul

goldenbear
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Tekoa De Silva

Great little video by Tekoa that was put on the main page by eyeswideopen. Hat tip to him. Thought it would be good to have it on this thread as well. Sounds like he has done some research into the subject, even has a book out.

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