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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: ild who wrote (63860)6/15/2006 5:28:41 PM
From: shades  Read Replies (1) of 110194
 
Margin Debt Fell 4.6% At NYSE-Member Firms In May
DOW JONES NEWSWIRES

Margin debt accumulated by investors who buy stocks with borrowed funds fell 4.6% last month.

The New York Stock Exchange said Thursday that debit balances in margin accounts of customers of NYSE-member securities firms fell to $230.54 billion in May, from $241.54 billion in April.

The drop in margin debt occurred as the Dow Jones Industrial Average lost 198.83 points, or 1.7%, in May, the biggest monthly decline since June 2005, and the worst May performance since 2000.

Market analysts track margin-debt activity as an indication of investors' appetite for speculative trading.

But a sudden drop in stock prices can result in margin calls, requiring margin traders to post additional collateral or see brokers sell their securities.

John Seward; 201-938-5400; AskNewswires@dowjones.com

(END) Dow Jones Newswires

June 15, 2006 15:41 ET (19:41 GMT)

Copyright (c) 2006 Dow Jones & Company, Inc.- - 03 41 PM EDT 06-15-06
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