Not sure if this is a correct forum, but does anyone know if it is legal to trade shares of the same stock between different brokerage accounts. Suppose I currently have long 100 of ABC in an IRA account and short 100 of ABC in a regular account, and I want to close both positions by trading between them...in other words, if I offer to buy back my shorted 100 at a price between the current ask and bid and immediately sell the long 100 at the new bid created by my short, is this legal? I am not referring to the wash sale rules here, but wondering if there is any legal issue regarding such transaction as above. Thanks folks.
dont know if it legal or not...but i think it would be hard maybe impossible for them to determine who and what accounts are being traded.. another thing....i am not sure who would even care... whats the harm?
It is not legal. I don't know if it requires intent to manipulate the market to be illegal, but people have gotten nailed for this. I am sure someone will post that has detailed knowledge about this.