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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Y. Samuel Arai who wrote (106451)4/17/2000 11:59:00 PM
From: TimF  Read Replies (1) | Respond to of 1578302
 
Thank you, Sam.

RE:This scenario doesn't make too much sense to me...
If you have $10,000 in a margin account, and you bought $2000 worth of stock, and added another $1000 cash to it, your
balance is $11,000, with $2000 of it consisting of stock. Even if the stock became completely worthless, your balance will be
$9000. You will never get a margin call, because you're not using any margin.

Maybe you can clarify your question a little bit more...

Sam

I meant the having the $10000 all in stock so that when you add $1000 in cash and buy $2000 of stock you would be using $1000 of margin. My second question was basically the first restated in a different way. Since you did a good job of answering the first you also answered the second.

Tim