You could find a broker that does have checkwriting associated with their brokerage account. You could open a checking account at a bank or credit union and transfer money from the broker to the checking account as needed.
Ira Smilovitz
In a message dated 11/04/03 8:28:27 PM Eastern Standard Time, failteg@bivio.com writes:
Hmmmm....thanks Ira. Assuming a Club did not have any other
account other than the broker account, how would a Club pay
their expenses without check writing privileges. For
example, I just renewed my Bivio membership by using my
Visa. Ordinarily upon submission of my receipt, a check
would be written out to reimburse me for this expense. What
now?
Thanks again,
Ellen
****************************
IraS1@aol.com wrote:
> There are two disadvantages. The first is that having a margin account means you can write checks (or buy stocks) for more than your balance in the account. You have an overdraft line of credit. If you should use the credit line each and every partner would be personally liable for repaying the debt. In the normal course of events, that might not be a problem, but do you want to create an opportunity for someone to take advantage?
>
> Second, most investment club partnership agreements prohibit the club from taking on debt (mainly to protect against the sort of problem outlined above). That means you can't open a margin account without amending your agreement.
>
> Ira Smilovitz
>
> In a message dated 11/04/03 6:32:57 PM Eastern Standard Time, failteg@bivio.com writes:
> We have recently been switched from Mydiscountbroker to
> Ameritrade. When I requested checks for the Ameritrade
> account, I was told I had to apply for a Margin Account in
> order to have check writing privileges.
>
> Could someone tell me if there are any *disadvantages* to
> opening up a Margin Account? I just don't understand why
> this is necessary just to get a checkbook!
>
> Thank you for your help in this regard.
>
> Ellen