Margin Calls - Share The Pain Message Board

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Strategies & Market Trends : Margin Calls - Share The Pain

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To: swisstrader who wrote (9)	11/30/2000 6:56:29 PM
From: Dan Spillane	Read Replies (3) of 158

Seattle-ites have been feeling pain. The news here in Seattle was that some people's houses and cars were in trouble due to margin calls. If you haven't got a margin call in the long fall since April and have been using it heavily, I would be surprised. Here in Seattle, there has been steady news of margin calls for some time. Microsoft employees can borrow against stock options which aren't yet realized. Apparently some people leveraged houses and cars with this--this was in the news just a few weeks ago. So many stocks are trading at rock-bottom prices, there could actually be a leveling out of margin calls now, so long as an account is diversified. Many stocks are "dead", trading at some ratio to book value, essentially a flat line for some time. And I think the Nasdaq has felt some serious margin selling pressure which may explain the low valuations which are as insane in many cases. Let's face it, there are many value stocks on the Nasdaq trading at multi-year lows where the risk profile is not high. I know of some stocks which are trading below cash value. Margin selling might explain this.

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