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Hello The Funkhousers,
the Illinois trust company you mention (InTrust) was bought by
Millenium Trust and is still doing futures accounts. The hit to most
recent (post 97) accounts was fairly small and all seems well. I
don't know their policy on shorting stocks but their requirements for
futures are very liberal.
Wednesday, February 20, 2002, 9:29:37 AM, you wrote:
TF> -------- Original Message --------
TF> Subject: Re: Scope of Trading in an IRA Acct: Short Selling?
TF> Date: Tue, 19 Feb 2002 22:07:05 -0500
TF> From: The Funkhousers <funkhouser@xxxxxxxx>
TF> To: TaoOfDow <TaoOfDow@xxxxxxxxxxxxxx>
TF> References: <3C73095E.906DA875@xxxxxxxxxxxxxx>
TF> I have been unable to find a broker who will allow short sales, probably
TF> due
TF> to the fact that a margin account is required in order to be a short
TF> seller.
TF> Part of the problem relates to what is described as "unrelated business
TF> income," a carryover from the tax laws originally established for tax
TF> sheltered retirement income and pension plans.
TF> There was an Illinois based trust operation who permitted these
TF> activities
TF> in accounts where they were the nominal trustees, but they collapsed
TF> when it
TF> was discovered that the principals of the trust company had lent most of
TF> the
TF> trust assets to corporations controlled by them.
TF> You can, however buy mutual funds who have investment objectives
TF> designed to
TF> negatively mirror various stock indexes, some of which are leveraged.
TF> Richard Funkhouser
TF> TaoOfDow wrote:
>> Dear Group,
>>
>> My understanding is that for an IRA Acct, one can trade through the
>> following types of accounts:
>>
>> 1. Stock account: Buy stocks for cash (but not margin);
>> 2. Futures account: Buy or sell futures (through a trusteed account, eg
>> old InTrust); and
>> 3. Stock option account: Buy (or sell?) stock options (at least I've
>> seen ads to do this - no personal experience).
>>
>> Query: Is there any way to short-sell stocks in an IRA, for example even
>> the QQQ stock tracking stock?
>>
>> Sincerely,
>>
>> Richard
--
Best regards,
Jim mailto:jejohn@xxxxxxxxxxxxxxxx
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