ETF Guys & Gals at Prop Firms - A Question for you

Discussion in 'Prop Firms' started by WinstonTJ, Feb 2, 2009.

  1. Guys & Gals,
    ETFs are commonly traded by many day-traders and at many prop-firms. I have a question for you:

    If you buy an ETF (any ETF) at 10:00am and sell at 10:05am do you get a prospectus either via e-delivery (email) or paper?

    What I'm wondering is what constitutes a shareholder and what constitutes a shareholder of record? Because an ETF is a mutual fund (essentially) there are regulations like prospectus delivery, etc. If you trade intra-day but do not hold overnight do you get prospectus?

    I'll be happy to bribe anyone who can help with a 3x ETF t-shirt
  2. right, you have to hold overnight to be on the record of shareholders.
  3. do you know 100% if you only hold intra-day that you do not get a prospectus?
  4. Yes, unless my head office has a network of warehouses full of paper. In which case, i would expect them to tell me otherwise!
  5. Thank you !
  6. Great Question:)
    But be careful when you are short the ETF and hold the position overnight. Since you are short, you have to mail the prospectus next day, the mail costs add up:)