TAVA BECOMES MARGINABLE FEBRUARY 9
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The Federal Reserve Board's list of marginable stocks has now been released and it includes Topro, Inc., which becomes marginable on February 9. FRB list on this link:
bog.frb.fed.us
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Like to provide some comments on margins. It seems there are some wrong concepts in some of the posts. - GoodQ
1. First, Margins are not provided by FRB or NMS. Margins are "LOANS" provided to you by the broker, based on the stock which the broker have assessed he is willing to risk his money, and lend it to you. Therefore, a broker is the SOLE decision maker for margin.
2. A broker is in business to make money, If he is too easy to give margin on any stock, he don't just lose money but can lose his job when people sue them for poor judgement, etc. Therefore, they look for a third party to assess margin risk.
3. The FRB is that party which make a judgement on a company's health and declares them fit for margin. Similarly, if a company gets on the NMS, they also passed the requirement to be healthy enough to be margined.
4. Since the FRB/NMS takes the responsibility for declaring a company's health in regard to margins, most broker will margin a stock once that is the case. However, the decision solely belongs to the broker.
EVERYTHING you always wanted to know about margins...
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