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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: YlangYlangBreeze who wrote (55455)	12/21/1999 1:30:00 PM
From: Cooters	Read Replies (1) \| Respond to of 152472

YYB, Those new shares do not increase your equity. Cooters

To: YlangYlangBreeze who wrote (55455)	12/21/1999 1:32:00 PM
From: R. Ramesh	Read Replies (1) \| Respond to of 152472

I assume that you want to calculate the equity present as the value of Q changes. Here is my attempt. Let us say you have x dollars invested with current equity e. Current account value = xe Current loan = x (1-e) Let Q change from current price by a factor of y (for eg. a 10% gain will make y 1.1 and a 10% decline will make it 0.9) New account value = (x * y) - x * (1 - e) New account equity = ((xy) - x (1 - e))/(x*y) cancelling x from both numerator and denominator we get, new equity = (y - ( 1 - e ))/y Hope this helps. BTW, suppose you are interested in finding out when margin call kicks in etc. Here is a formula Decline to margin call = (e - m)/(1-m) where m is equity percent when margin call is issued by your broker and e is current equity. For example assuming e = 50% and m = 30% we get (at full margin) decline ratio = 0.2/0.7 = 0.285 That is at 28.5% decline in Q's price from current level will trigger margin call with above e and m values. Disclaimer: Always consult your broker regarding margin calls before taking your investment decisions. Not responsible for mistakes in calculations. Ramesh

To: YlangYlangBreeze who wrote (55455)	12/21/1999 2:14:00 PM
From: Tlac	Read Replies (1) \| Respond to of 152472

Would this help? <g> Margin Calculation Spreadsheet Current Market Value ($) $100,000 Current Loan ($) $20,000 Current Margin Equity ($) $80,000 Loss to survive (%) 20.0% Current Price $385.00 After Loss $308.00 Current % Equity 80.0% Current Loan (% of Equity) 25.0% Current "Margin" 20.0% Max Safe Loan (% of Equity) 66.7% Max Safe Loan ($) $53,333 "Safe" leverage available ($) $33,333 "Safe" cash available ($) $16,667 Cash Out to checking $5,000 Net Leverage available $23,333 Net Cash available $11,667 Share Price Avail. 385.0 # Shares to buy 61 Option Price Avail. 117 # Options to buy 100 Kelly (e-mail for copy)