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To: HG who wrote (90096)1/7/2000 1:03:00 AM
From: Jan Crawley  Read Replies (1) | Respond to of 164684
 
I wonder how many people were severely on margin

I say that most "margin user(retail)" are the nets players; few would use margin to buy WFC/KR. <g>
Ty for the message. :)



To: HG who wrote (90096)1/7/2000 1:10:00 AM
From: Tradegod  Read Replies (1) | Respond to of 164684
 
>>Oh yeah, I was talking about scenario when no margin is used to purchase the equity..

Well then there would be no stock on margin, hence no margin call.

I wonder how many people were severely on margin.....in times like this where the markets had run so much lately...

My guess is that it was significant. Whether Hedge Funds pumping performance at year end, or individuals wanting in, the extra buying more than likely incorporated the use of margin.

I agree with William on the potential for a snowballing effect. After so much good news over the last few months, we've been hit back to back from Gateway and Lucent. It has a psycological effect on traders and investors. Just like those who cuss themselves for missing a run in the stock, they now will be beating themselves up for not selling out when the mania had driven the prices so high.

I have a close friend who works for YHOO, He is eligible to exercise the first 20% of his options but unfortunately is currently in a restricted period until 3 days after earnings next week. He's seen a 300 point round trip in the last two weeks. We're talking millions that were there and now are not there. It hurts.