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Technology Stocks : Softbank Group Corp
SFTBY 50.04-11.1%Nov 25 3:59 PM EST

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To: manohar kanuri who wrote (4994)4/26/2000 9:53:00 PM
From: Yamakita  Read Replies (1) of 6020
 
You're missing it Manohar.

Brokerages count cash accounts and margin accounts as one whole portfolio: one account. Part of that account is marginable, part isn't. But there is just one figure for overall percent equity. If I've margined myself to the hilt in stocks *other* than 9984, the percent equity of *the whole port* falls as prices decline. When 9984 was whacked by two-thirds the other day, I saw a significant decline in my overall percent equity, even though 9984 is not marginable. Had I been on the border line, that would have triggered a margin call.

You're saying that 9984 could fall to zero and not affect my overall percent equity. That is plain wrong. It does affect it, because the *overall value* of the port declines, thus sending my equity percentage south.

If the only stock I held was 9984, you would be absolutely correct.
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