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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 226.99+0.6%Dec 8 3:59 PM EST

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To: Gary Walker who wrote (31319)12/28/1998 6:07:00 AM
From: FR1  Read Replies (2) of 164684
 
Perhaps the fed will tighten margin requirements on the net stocks.

This has already happened. Just recently brokerage houses, after being pushed by NASDAQ, have changed their margin requirements. If you want to buy a net stock (YHOO, AMZN, etc) the margin requirements are now 70%!! and some stocks IBM, DELL, etc are as low as 30%. Call Fidelity and you will see it is true.

It used to be that you could borrow 50% of the value of your account.

This will bring some sanity to the net stocks but will be an accounting mess. Basically, they are making the margin requirement go up as the option premium does.
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