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Technology Stocks : Extended Systems Inc (XTND)

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To: uthabros who wrote (284)5/26/2000 11:47:00 AM
From: Lee N   of 403
 
O.T. Wondering if anyone can answer an investment question for me. A usual stock above $5.00 can be purchased on margin with the requirement that 35% must be cash in your account. Some stocks are rated at 50%, 70%, or even 100%. This is the case with XTND for instance. In other words you cannot purchase XTND on margin. Is this correct everyone? This brings up my next question. Who puts this margin rating on a stock and why? Is it based strictly on its volatility or is it also based on its return on equity and other factors? I would welcome responses from knowledgable investors. Thanks.
Lee
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