Hello,

Would it be possible to set up a club which relies on a
stock picking service for potential investments? The
investments would last no longer than a week and some may
only last a day or so. The service would suggest a few
stocks to consider for the following day, provided that
those stocks traded at a certain price during that day.
Therefore, in an attempt to include all the club members in
the decision, I would take a poll the night before which
would present the members with the recommended stocks. The
members could vote on whether or not to take the service's
advice so long as the stock traded at the given price. And
for all those members who may vote no, or do not cast a vote
at all, their share of the clubs cash would not be invested
the following day at all.

Hopefully after some time of proving the service's stock
picks, most members would vote in favor of the suggested
stocks on a consistent basis.

Your knowledge and advice is appreciated.

Reed

I am not sure of any legal implications, but have you
considered how you are going to account for this on the tax
return or as far as member valuations etc. I really don't
think it would be possible, especially considering you are
going to be rapidly trading the stocks.

Besides the fact that this doesn't seem like a wise
investment strategy, it is especially poor for an investment
club. It will be difficult to be deciding every night what
stocks to invest in the next day.


R Savage wrote:
> Hello,
>
> Would it be possible to set up a club which relies on a
> stock picking service for potential investments? The
> investments would last no longer than a week and some may
> only last a day or so. The service would suggest a few
> stocks to consider for the following day, provided that
> those stocks traded at a certain price during that day.
> Therefore, in an attempt to include all the club members in
> the decision, I would take a poll the night before which
> would present the members with the recommended stocks. The
> members could vote on whether or not to take the service's
> advice so long as the stock traded at the given price. And
> for all those members who may vote no, or do not cast a vote
> at all, their share of the clubs cash would not be invested
> the following day at all.
>
> Hopefully after some time of proving the service's stock
> picks, most members would vote in favor of the suggested
> stocks on a consistent basis.
>
> Your knowledge and advice is appreciated.
>
> Reed