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Technology Stocks : Cymer (CYMI)

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To: rsc who wrote (9095)11/11/1997 6:41:00 PM
From: Greg Jung  Read Replies (1) of 25960
 
<< What is a 'margin squeeze'? >>

Investors are allowed to borrow money on the value of their stock holdings. So you can be 200% invested (and more). The prices drop, the collateral drops, until at the margin limit the investor is forced to bring money in to pay off the loan or, more often, sell securities in his account to maintain the loan margin. Jess was (purportedly, since this is the 'net and a very suspect thread, although I believe it.) was recently forced to sell the bulk of his CYMI position in this way.
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