Archive - May 9, 2016

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What Is Settlement Date And Why Does It Matter?
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The Madoff Scam: What Can We Learn?

What Is Settlement Date And Why Does It Matter?

Most investors think that whenever you buy or sell a security the money is immediately deducted or deposited into your account. This is not true.

Although the results of the trade may look as though they have taken place, the money is not actually due until the settlement date.

Mutual fund trades settle in one day and must be made before 4pm. The mutual fund companies then use the pricing of assets as of 4pm to set the share price for the assets they own and then determine how many shares each new investor is purchasing for the deposit they …

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The Madoff Scam: What Can We Learn?

Note: This is a re-publish of an article from early 2009 – but the lessons are still very useful in today’s world.

You’d have to be living under a rock to not know about the scandal of Bernie Madoff’s firm – wherein the supposedly legitimate Madoff bilked some of the most sophisticated investors in the world out of something like $50 billion. The Ponzi scheme has been around forever, for the very fact that it works – much to the chagrin of those caught in its web.

The bright spot for all of us (as long as you weren’t caught …

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