worldco going out of business??

Not to any degree that you would think ...

 

This is bullshit. Most firms will not allow anyone off of the street to come in a "check their balance sheets". Furthermore, if you were able to check the firms sheets 2 years ago and they were fine, what good does that do you in the present? What, are you expected to check up on them on a monthly basis? They'll think you're working for the SEC.

Axe

 

that's true. i don't know of one shop that will let you look at their books.

 

except bright trading

 

I guess now we can really say R.I.P. Worldco 1993-2003!

 

I almost forgot about that thread.

 

I beg to differ, Axe. When you become a member of any partnership, you are not only allowed access to financial records, you are sorely lacking in due diligence if you don't. Would you risk your own personal liabilitity in any business without checking your partner? Would you start a donut shop with someone without checking them out?

Also, it's not a matter of "looking" at the balance sheets, you must know what you're looking at. Ask how your money is treated in case of bankruptcy, read the contracts before putting up any money. Heck, I'm sure that when you buy a house or a car, that you read the agreements.

This is akin to not checking your sheets every morning. If, somehow, there were 5,000 shares of some stock under your name, and you didn't bring it to the attention of the Firm, there is a good chance that you could be held responsible for any losses incurred.

I've received several PM's regarding WorlcCo, but I really don't care at this point what they're doing, except if it affects the industry (ala Harbor, Block, and a slew of others who stuck it to their traders).

Any decent firm (and there are a few) will respect you more if you do your due diligence. We show everything right after a U-4 form is filed. Obviously not to "anyone off the street" (everyone is, however, welcome to look at balance sheets if requested).

Caveat Emptor!

Hope to see you in Vegas!

Don

 

is merging with block trading and abwatley

 

As a former Worldco trader I am very shocked about their current situation. It's one thing to downsize and get rid of traders who are losing money, but bankruptcy for a firm of that size is pretty shocking, at least to me. This makes me wonder if their downfall has more to do with bad managment and a bad business model or just the general state of the market and proprietary trading industry as a whole. During the year that I spent trading in one of their Florida offices, there were guys making pretty good money, of course the market has gotten much worse, and profits are not what they used to be...but damn...to just go belly up!!!

I wonder how many of these other firms are just a month or so from bankruptcy?? You never know...they could have two sets of books, one set they show to their traders and the real set they keep locked up somewhere. Is the future of most of the prop firms simply dependent on whether the market gets "good" again?? What if sustained periods of good trading opportunites are scarce for the next 2 or 3 years, I wonder how many more firms will be in the same boat?

I know several Worldco traders who are worried about getting their money from capital and deferred accounts. They tell me that if they go elsewhere and trade they will never put up more than $5000, just to limit their losses if this ever happens again.

 

..... Our friend axehawk has obviously never been involved in a business as a principal investor or senior management.

Whenever anyone starts a new business - with their own money or others - they are obliged to carefully and completely research the parameters of the deal. This means understanding the cash flow, reserve funds mechanics, and all of the legal framework governing the dispersment and flow of receivables, payables, profit sharing etc. I also recommend background investigations on all partners, senior management etc.

This is your obligation: If you dont do it and get burned then it is a risk you undertook and lost on .....

On the other hand, it is quite possible to do all this homework and still lose on a business venture: everything can be in place and business conditions can change with management not reacting swiftly or strategically to address the situation - especially if they have never encountered it before.

As far as worldco goes the business will survive and continue with or without them: Like Don said, the negative would be if a lot of sub LLC's somehow lost their money. Whatever their situation I hope that everybody comes out more or less ok .....