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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 (4997)	4/26/2000 10:45:00 PM
From: Yamakita	Read Replies (1) of 6020

That's not my understanding at all, but I could be wrong. Etrade has a margin maintenance requirement of 35 percent. Let's say, in the margin portion of my account, I bought all the high-flyers at their highs. When they crash big time, maybe it sent my equity percent right down to the wire, right at 35 percent. Now, let's say they stabilize for a while, neither rising nor falling. During this period of stabilization, two-thirds of the value of my 9984 disappears. This puts me way under 35 percent, hence triggering a margin call. What triggers the call is not necessarily a drop in the value of my marginable securities; it's a drop in my overall percent equity. What am I missing?

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