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Non-Tech : Wit Capital - The way of the future? -- Ignore unavailable to you. Want to Upgrade?

To: kcmike who wrote (5165)	6/18/1999 5:56:00 PM
From: Lao Ou	Read Replies (1) \| Respond to of 16809

kcmike: I got a question for you about cash and margin account in Wit. My account is marginable. Say I have $1500 cash left. Can I use it to buy IPO at the price of $20 for 100 shares without sending them any extra cash. I thought I have only one account. Why Wit would ask cash or margin account when I want to buy or sell some stocks. Not very clear to me. Thanks for your answer.

To: kcmike who wrote (5165)	6/18/1999 6:10:00 PM
From: Praetor	Read Replies (1) \| Respond to of 16809

Not quite right, kcmike... Unless I'm mistaken, you cannot buy IPOs on margin. And from my personal experience with the VIAN IPO... I had only $300 cash in my Money Market fund (why keep much cash in a brokerage account?). Because of the market value of my account at Wit (about $10k, in this case), I was allocated shares for VIAN - I have to sell something to cover the allocation, but I've still got the 100 VIAN. I have a normal Cash Account at Wit, not Margin. So Venom, you have to have a "minimum $1,000 of cash or the minimum $2000 net market value in a combination of cash or fully paid securities at the time the deal [becomes] effective." (A quote from Wit's e-mail, take that with a grain of salt.) Praetor

To: kcmike who wrote (5165)	6/20/1999 6:39:00 PM
From: Richard N. Barg	Read Replies (2) \| Respond to of 16809

I don't think you are right about cash accounts - see below re: my question to wit: Thank you for your inquiry. This is the new policy for IPO eligibility: IRA Accounts Must have fully funded cash sufficient to purchase the security. Cash Accounts Must have $1000 in cash or Money Fund balance ($2000 as of 7/21/99) or $2000 of fully paid for equity or A combination of cash (or mm balance) and fully paid for equity totaling $2000 Margin Accounts Must have buying power plus money market balance of $2000 or cash equal to $1000 ($2000 as of 7/21/99) Wit Capital