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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Jim Willie CB who wrote (45451)	12/20/2001 2:19:44 PM
From: Sully-	Read Replies (2) of 65232

NYSE margin debt rises first time in six months NEW YORK, Dec 20 (Reuters) - The amount investors borrowed from New York Stock Exchange member firms to buy stocks rose in November for the first time in six months, the Big Board said on Thursday. The borrowings, known as margin debt, increased 3.2 percent to $148.7 billion from $144 billion in October. The rise is the first since May, when margin debt reached $174.2 billion, or 4.3 percent above the prior month. Margin debt fell each month from June through October, roughly reflecting a May-through-September decline in the Standard & Poor's 500 Index (^SPX - news) to a three-year low. Equity market investors with margin accounts can typically borrow up to 50 percent of their positions to finance the purchase of stocks or for other expenditures. After they buy the securities, investors must adhere to minimum maintenance requirements on their accounts. If a drop in stock prices causes investors to breach these rules, they either have to put more cash into the account, or their broker could force them to sell some or all of their holdings. A rise in margin debt signifies that investors are borrowing to buy on expectations that stock prices will improve. Margin debt hit a record level -- $278.5 billion -- in March 2000, when technology and Internet stocks peaked. The NYSE releases margin debt figures each month. biz.yahoo.com

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