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Strategies & Market Trends : Tech Stock Options

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To: HairBall who wrote (58178)12/1/1998 12:13:00 PM
From: Elroy Jetson  Read Replies (2) of 58727
 
Waterhouse was cited in the Wall Street Journal yesterday as raising Margin requirements on some internet stocks. The truth of the matter is Waterhouse is applying restrictions to "Concentrated Accounts" as they often do.

An account invested wholly in AOL, Yahoo!, and e-Bay is not affected. An account invested completely in e-Bay must meet 50% minimum Margin requirements on a daily basis. A diversified account must start at 50% equity and are permitted to fall to 35%.

This restriction is often applied to a concentrated account, and for the customers own good, After all, what sane person would put all of their money into only one volatile stock.
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