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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club
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To: Investor2 who wrote (2355)12/3/1998 9:22:00 PM
From: Math Junkie  Read Replies (1) of 15132
 
Subtract the amount you owe to the brokerage from the total market value of your holdings. That is your equity. If your equity falls below the specified percentage of your total holdings (in this case 50%), then I believe the brokerage will give you 3 days to either come up with the cash to get your equity back within limits, or to sell enough securities to accomplish it. If you have not done so within three days, then they can sell your securities for you.
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