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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Michael who wrote (1431)	6/21/1999 5:06:00 PM
From: lindend	Read Replies (2) \| Respond to of 10293

Yes it is random!!! Actually, its not, but the formula is so complicated it might as well be! Here's what Fido told me. The margin requirements for shorting will depend on the security. You can call a Fidelity brokerage specialist at 800 544-8666 for more information. In addition to having a margin agreement on file, customers must meet the following initial margin requirements by the trade settlement date: Minimum margin equity of $5,000 50% of the market value. Customers cannot use proceeds from the short sale to meet this requirement. Fidelity maintains 100% of the proceeds from the short sale as a short credit balance in a short account. Stocks priced under $10 have a maintenance requirement that is higher than the initial requirement. Customers who short these stocks must meet both requirements by the settlement date. Fidelity's maintenance requirements based on the share price are listed below: $17 or more: 30% of market value Between $5 and $17: $5 per share $5 or less: 100% of market value or $2.50 per share, whichever is greater In addition: Nonmarginable securities have a 100% initial and maintenance requirement. Shorts-against-the-box have a 5% initial and maintenance requirement.