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Biotech / Medical : ZILA--test for oral cancer?

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To: DC who wrote (57)9/7/1996 3:01:00 PM
From: Julio P. Antelo   of 61
 
DC

You can set up two types of accounts with your broker, cash and margin. On your margin account you can borrow funds from the broker to buy certain stocks (there are many guidelines and they vary from broker to broker). I'm not sure what the specific NASDAQ guidelines are for a stock to be marginable but they usually involve having a minimum daily trading volume, the stock being above a certain price and perhaps even the financial strength of the company.

It may not have intrinsic value, but it does have symbolic value since it implies that the stock is from a more mature, stable company and that it has a more liquid market. For instance, many mutual fund charters prohibit their managers from buying securities below a certain price and securities that are not very liquid, so in a sense this may expand the potential market for the stock. On the other hand, being able to buy the stock with other people's money also attracts the speculators, momentum players and traders so you may see increase volatility. Hope this helps. Julio
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