SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : AIM Questions and Answers

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Philip Ng who wrote (135)12/18/2000 12:25:26 PM
From: Bernie Goldberg   of 221
 
Hi,
Tom will probably answer this but I guess since I read it first I will put in my two cents worth.
You asked:What happens in the reverse? eg When I get my bonus and I want to add it to the portfolio? What happens to the PC?
I know that whenever a purchase is made, half the value is added to the PC but the PC is not touched when a sale is made.

When you add Cash to your AIM program you haven't changed your market risk. PC does not change.
If AIM wants you to buy shares and you add cash and then buy shares PC goes up by 1/2 the amount of the buy.
If you add cash to your AIM program and make a buy thjat is not recommended by AIM your PC goes up by 100% of the buy since you are increasing your market risk.
The following I am not as sure of as I am of the preceding.
If you just remove cash from your AIM program you have not changed your market risk so I don't think you should change your PC.
Hope this helps.
Bernie
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext