Positively Penurious
About two weeks ago, I opened a new account for a parsimonious, but extraordinarily wealthy old battle-axe from New Jersey. The fiery and ancient fishwife, whose net worth is between five and ten-million dollars, purchased ten-thousand dollars worth of a new-issue bond from me.
The next day, after I had already opened the account and processed the trade, she called back and told me she required another one-thousand dollars worth of that exact same bond. I told her that it was no longer available, as it was a new issue and had sold quickly, but that I'd be happy to put the other thousand into another new issue that had become available.
The decrepit old ogress told me - actually, she was snarling and yelling - that it didn't make sense for her to have such a small amount of the second bond, and that I was to cancel the first trade immediately and close the account.
What warranted such extreme measures, you ask?
Well, if she had two bonds being held by our brokerage firm, her end-of-year report (a '1099,' which is prepared for tax purposes) would contain an additional line showing the interest earned from the second, smaller bond position. As a result, her accountant would charge her an additional fee for the extra labor, which would cut into the overall yield of the bond over the seven years until its maturity.
I cancelled, or "busted" the trade, sold the bond at a loss on the open market to cover her debit, and had to absorb the difference myself.
One, don't ever renege on a good-faith transaction. Two, don't ever be so miserly that it causes you to act like an asshole.
The next day, after I had already opened the account and processed the trade, she called back and told me she required another one-thousand dollars worth of that exact same bond. I told her that it was no longer available, as it was a new issue and had sold quickly, but that I'd be happy to put the other thousand into another new issue that had become available.
The decrepit old ogress told me - actually, she was snarling and yelling - that it didn't make sense for her to have such a small amount of the second bond, and that I was to cancel the first trade immediately and close the account.
What warranted such extreme measures, you ask?
Well, if she had two bonds being held by our brokerage firm, her end-of-year report (a '1099,' which is prepared for tax purposes) would contain an additional line showing the interest earned from the second, smaller bond position. As a result, her accountant would charge her an additional fee for the extra labor, which would cut into the overall yield of the bond over the seven years until its maturity.
I cancelled, or "busted" the trade, sold the bond at a loss on the open market to cover her debit, and had to absorb the difference myself.
One, don't ever renege on a good-faith transaction. Two, don't ever be so miserly that it causes you to act like an asshole.
posted by SD at 3:48 AM
3 Comments:
urrrrrrrrrrrrrh???? *tim the tool man taylor style*
that was a complete bouncer.
oh wait...american... that was completely over my head.
Sorry!
hehehe you dont have to apollylollogise you know *smiley face* cos my keyboard is messed up and i cant use colons. my GOD thats got to be the longest smiley in the universe.
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