How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 472.22

-1.3%

Nov 21 9:30 AM EST

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To: Yaacov who wrote (6365)	5/1/1998 12:56:00 PM
From: Deliveryman	Read Replies (2) of 74651

Yaacov askes: "What you mean to buy on Margin? Do you mean to borrow morney? Could you pls explain that step by step!" If you used cash to buy the original 100 shares ($9,000), and the value of the stock goes up to say 130, the value of your investment is now $13,000. Your broker will now allow you to buy $6,500 worth of stock. In my example you buy 50 shares (or 50% of your holdings). You are borrowing money, and using the stock as security. Most brokers give a decent rate... Does this explain it enough?

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