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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?


To: James Fulop who wrote (22996)6/20/1999 8:33:00 AM
From: MileHigh  Read Replies (1) | Respond to of 93625
 
Yes, they are telling you that in their opinion RMBS is a risky stock and does not meet their normal "credit worthiness" tests for use as collateral to borrow against. Schwab is 50% margin requirement- at least it was last time I checked.

MileHigh

PS- edit, but that's interesting in that Fidelity is a big shareholder!?



To: James Fulop who wrote (22996)6/20/1999 10:10:00 AM
From: Al Serrao  Read Replies (1) | Respond to of 93625
 
James, remember leverage is a two sided sword. And if you holding a short position that means you holding a margin position. With the recent rise in RMBS there are bound to margin calls going out. Who can blame Fidelity. Regards.