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To: Brian P. who wrote (45434)4/8/2000 4:58:00 PM
From: Joan Osland Graffius  Read Replies (1) | Respond to of 99985
 
Brian, >>How do you square this statement with the fact that one usually has at least three days to cover a margin call?

This is only if the brokerage house knows for sure that you have assets to cover the margin call. These houses can sell your paper assets at will if they want to.

joan



To: Brian P. who wrote (45434)4/8/2000 5:16:00 PM
From: Benkea  Respond to of 99985
 
"How do you square this statement with the fact that one usually has at least three days to cover a margin call?"

That 3 days is a myth. Ask your broker. They can sell immediately without ANY notice when you get below requirements. Further, the LAW is 25% equity REQUIRES immediately liquidation. Many, if not most, were very close, if not at, margin call levels at Fridays close a week ago. By intraday Tuesday, they were very likely below the 25% level at least.