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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?


To: Dwight E. Karlsen who wrote (26577)7/18/1999 9:08:00 PM
From: PMS Witch  Respond to of 74651
 
Off topic ... Margin stuff

If the share price and corresponding margin borrowing power drops with it, I imagine you would have to pony up the borrowed money, or at least a portion of it.

You're exactly correct. My broker is willing to lend 70% against Microsoft. To hold one dollar of stock I'd need to put up thirty cents. Any less results in a margin call.

I'll get a margin call once MSFT drops to $3, so I'm not too worried, for now!

Cheers, PW.