For what it is worth, Waterhouse told me if I have sufficient "buying power" in my account I can in effect buy the IPO on margin.
If I have no cash in the account, but say $500,000 in marginable securities, I could just write a check off the margin account and send it to Waterhouse to pay for the IPO. So therefore, if I have buying power, I can buy it on margin. But, the IPO is not marginable.
Do you think the person who told you this knew what he/she was talking about? I have sufficient securities in my account, but am about 15% into my margin level at the moment. So if I get an allocation in the IPO, I go to my local Waterhouse office and just write them a check off of my currently 15% into margin account? That sounds crazy. If that was OK, you'd figure they would just allow me to get in on the IPO and increase the margin level accordingly.
Anyway, I guess I'll call Waterhouse and ask. Isn't there a phone number somewhere for questions on the IPO?
"You can contact an Electronic Brokerage Customer Service Representative 24 hours a day, 7 days a week at 1-800-555-3875."
Elroy. |
