“Vice Stocks” — are they the future?
It’s hard to tell what is in store politically for the stock market. If it wasn’t then the potential return wouldn’t be nearly as great. But it can be made even more mysterious by all the arcane and arbitrary rules imposed.
The message said ‘a good faith violation has occurred’ and threatened what could only be described as punitive measures if the instigating behavior continued. Upon closer reading it could mean that a violation was committed but it was, however, made innocently, in “good faith”. Or maybe it meant what it looked like it meant at first glance, that a violation was committed and it was a breach of good faith, or, more to the point, made it was a violation made in BAD FAITH. Either way I didn’t like the sound of it.
I had been trading stocks in my Chase You Invest account. You Invest is a new feature offered last summer by J.P. Morgan Chase Bank for personal account investors to make stock trades at inexpensive fees, $2.95 per trade. I guess I had been trading too quickly and not waiting the two days it takes for a sale to resolve. But each time I made a sale of one block of stocks the money from it appeared in my sweeps fund column so I went ahead and bought something else that looked interesting. This is where the problem was: the sale of the stocks takes two days to arrive in my account, the person at the Help Desk line told me, and using it for a purchase is against the rules. SO WHY DID THE MONEY APPEAR IN MY ACCOUNT IMMEDIATELY THEN? Was it a glitch in the system, a mistake? The Help Desk line supervisor told me it was “on” Chase, meaning it was their fault, their mistake. Okay then why did I get this threatening message in my inbox accusing me of a good faith violation, was I baited, was it a cruel joke, a scam setting me up for a future fine or something? Here’s the message:
‘Please be advised a good faith violation has occurred in the above referenced account. A good faith violation occurs when you purchase a security with unsettled funds and then sell the security prior to the settlement of those funds. If this occurs within the account three times in a calendar year, a 90-day restriction will be placed on your account. During the 90-day period, you will only be able to trade with settled funds or deposited cash. Trade orders will not be processed if the account has insufficient cash available to place the trade. During the 90-day restriction, you will only be able to place limit orders; you will be unable to place market orders. The restriction will be removed automatically after 90 calendar days.’
Stocks market trading is so weird.