Kids, don't try this at home. (Margining IPOs, even if Datek shows them as marginable.)
I got a private reply from one individual who said that his margined trades in COOL were broken.
Don't yell at Datek about this, though, unless it's about the mistake of allowing inappropriate margin in the first place - they don't have any choice but to follow the rules.
It is YOUR responsibility to understand statuatory margin requirements!
In addition, brokers can impose their own, more restrictive margin requirements, which I have occasionally seen Datek do. I see a lot of screaming when they do this, but it is their perogative, and usually should be taken by the investor as a clue. For example, when YHOO was over 200, before the split, Datek briefly yanked it's margin status. My old broker (Jack White) yanked IOMG a couple years back, RIGHT at the top.
Consider this free, and excellent, investment advice. :) |
