Discouraging Waterhouse report, Mama.
Is the 100 percent requirement across the board for Nets, or only for certain stocks? If only certain ones, how many on the 100 percent list, and do other categories exist? 80%? 60%?
Will try to clarify my logic.
Brokers are not really at risk if their systems are intelligent. The current theory is that if an investor is wiped out with negative equity, he/she could attempt to walk away. As a practical matter, this shouldn't represent much of a risk. And it can be obviated in a number of ways, such as raising account size requirements and establishing tiers for overall margin percentages of equity. As always, the solution is simple: know your client.
That's why certain firms (especially, full-service ones) are much more rational than others about Net stock margin limits and why, believe it or not, this whole issue is *negotiable.* If you have a defensible argument about your margin limits, make your case to a supervisor or branch manager. If you don't get what you believe you're entitled to, vote with your feet!
BAM
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