By Chris at www.CapitalistExploits.at
Have you ever asked yourself what happens when you place a trade?
I hadn’t given it much thought until about 10 years ago when something happened which opened my eyes to a single company that holds what is probably the most concentrated risk position in the US market.
Here’s what happened…
So, I took a position in a private placement. The shares came free trading after a 6-month lockup, and the stock had been running like the cops were after it.
It had a half warrant attached, which was deep deep in the money, and I wanted to scoop a healthy chunk of money off the table. Heck, this was a bloody drill play which, as you probably know, are more often than not burning matches. Bright and brilliant until they burn your fingers.
So, I’m busy scrambling to get the stock placed with a broker so that I can trade it.
First up was a very well known broker whose name I’ll keep out of the spotlight (I like the guys and gals there and it’s not that important). I’ll call them broker X.
I have an account with them and they said, “Sure, no problem.” A week later, “Ah sorry Sir, …read more