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Technology Stocks : DELL CLIMAX SITE
DELL 162.01+0.6%Oct 31 9:30 AM EST
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To: James Berg who wrote (131)8/1/1997 5:01:00 PM
From: Markus   of 158
 
To James

Yes theoretically it is true if the shares are not call back you can indeed hold it forever.

But if the price of the stock keep going up you have to give more money to your broker to keep up with your margin requirement.

Consider this example. Lets say we bought Apple Computer one year ago. The stock goes down from $30 something into the teens. As a long Investor we can wait it out, and hopes that Apple Computer might stage a come back.

Now consider this let say one year ago we short DELL at $20. To keep and maintain our short position up to this day we need to put another $65 for each share of DELL that we short. That is what I mean we cannot hold a short position indefinitely, if the market is against us, unless you are very rich. But with long position we can stay with our investment forever if we choose to without putting in new Dollar to maintain and keep that position.

Hope this is clear enough for you.
Bye
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