Salomon Smith Barney wipes out lottery winner

[Hydroblunt]

Quote from ByLoSellHi:

"A fool and his money will soon be parted."

"A fool and his money are lucky to get together in the first place"

 

[ElCubano]

Quote from TheStudent:

You are all missing the biggest point of all. Lottery is a state tax on the numerically challenged.

The vig on the lottery will make a Las Vegas casino blush. It will put the dog track and the horse track to shame.

It's state monopolized gambling with the worse possible odds. The real robbery has already been committed when you bought the ticket.

until ya hit.... then it was one hell of an investment..even if u played for years....id dispaear for about a month...just to think of what to do...i would not purchase one damn thing for at least a month....

 

[ByLoSellHi]

I would buy a monkey.

I've always wanted a monkey.

And yes, I would let him trade (his own account - if he blows up, oh well).

 

[NasdaqTrader]

Quote from da-net:

I can't say about the big firms, but I was a broker during the penny stock craze and I still have trouble getting that junk out of my head.

The big three of that era were;

Blinder Robinson aka Blind 'em and Rob 'em

Stuart James & Co aka Stew 'em and Jam 'em

R. B. Marich

all three of the above required brokers to push their junk. I refused. I had my office manager sell one of my customers some stock (Rykka) that she crossed from one of her customers while I was at lunch one day.

When my customer refused to pay, R.B. Marich sold out and pulled the loss from me! I asked corporate compliance officer to help, he refused. I contacted the NASD & SEC their attitude was "so what". The NASD & SEC turn a blind eye to what was going on in the firms. After that is when I got fired.

Do you think that things have changed any? I don't!

Were those in NYC? That city is infamous for chop shop bucket shops.

 

[ByLoSellHi]

You forgot Dewey, Cheatham & Howe.

 

[ElCubano]

Quote from NasdaqTrader:

Were those in NYC? That city is infamous for chop shop bucket shops.

and BOCA/ft luaderdale as well...i used to work for biltmore securities...$25mill IPO monthly which would triple sometimes and they get their clients to buy stock in the aftermarket which would net the broker 1 bone on a 7 stock...u do the math...can anyone say CA-CHING..they'd give a cat 3000 units which would triple and then with the excitement pound him into 50k shares at 7 with a freaken bone in it...that 50k gross on one trade..and yes i saw trades for $500k for a $3 stock from someone theyve never met...crazy when u think with ur pockets..that there are people who could send $500k to peoplke theyve never met..i never did any of this...i was just an naive cold caller /acct opener...

 

[cashmoney69]

It almost seems the wise thing to do is spend every penny before some asshole, family member, or friend takes it from you.

 

[Nanook]

Quote from NasdaqTrader:

Were those in NYC? That city is infamous for chop shop bucket shops.

The first two were in Denver, CO.
Not sure about the third.

 

[blackchip]

Very interesting.

Quote from ElCubano:

and BOCA/ft luaderdale as well...i used to work for biltmore securities...$25mill IPO monthly which would triple sometimes and they get their clients to buy stock in the aftermarket which would net the broker 1 bone on a 7 stock...u do the math...can anyone say CA-CHING..they'd give a cat 3000 units which would triple and then with the excitement pound him into 50k shares at 7 with a freaken bone in it...that 50k gross on one trade..and yes i saw trades for $500k for a $3 stock from someone theyve never met...crazy when u think with ur pockets..that there are people who could send $500k to peoplke theyve never met..i never did any of this...i was just an naive cold caller /acct opener...

 

[TheStudent]

Actually there is a good explanation why so many lottery winners have trouble holding on to their money.

Lotteries are strongly negative expectation (state vig is like 30 to 45%).

So only two kinds of people buy lotteries

Those who

1) have no interest in finding out how much vigourish there is in a game and are ignorant of the odds or

2) know the odds but in a triumph of hope over logic, dump the rational approach and buy the ticket anyway.

These two groups of people are less likely to be the kinds of people who make careful plans to salt away and stretch lottery wins in order to take care of them for the rest of their natural life.

So, lotteries self-select for people less likely to do the smart thing for themselves should they win.