Ok, the title is a little misleading but the question is this: Say I have 2 brokerage accounts. I want to lose $5000.00 in account "A" and gain $5000.00 in account "B". (comissions are not important at this point). But I do not want to use the traditional method of wiring from one acct to the other. I would rather do it thru a "trade". What method should I use and which securities should I trade in order to accomplish this task, preferably in 1-2 transactions? Would it be legal?
i did this once and got a nasty call from the broker. he told me its against the law to trade with yourself.
So you want to move money out of your IRA or your kid's UGM account into your account? tsk...tsk...tsk.
pspr, actually, I had something different in mind. Appreciate your participation. OK. lkh says the broker does not like it. What if it were a transaction between me and my cousin Vinnie? Assuming account "B" is in his name, would this transaction not be legal?
Try any of this stuff and you will quickly find out, how closely your trades are being monitored regards Bernd Kuerbs
I think Bernd is correct. Think about Terrorist A in Europe wanting to transfer money to Terrorist B in the U.S. Moving money from A's account to B's account using a simple trade would be perfect for them. Also, perfect to launder money. I'm sure the Feds are looking very closely for just this type of transaction.
Okay this had been thought through. The door had been closed. Only get into trouble by playing tricks. If not, for example, trading "inside" a market, the objective to move money from one account to another in a definite direction is as difficult as making profit in one account. Because you need to be right at the market direction, i.e. something like buy low and sell high. patriots swear that money laundry or tax offense is never permitted in the U.S. finance market.