Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Broadcom (BRCM) -- Ignore unavailable to you. Want to Upgrade?

To: Perry Ganz who wrote (3887)	5/13/2000 8:31:00 PM
From: Keith A Walker	Respond to of 6531

Perry, You are correct in that it was $0.10 in 1929 to buy a $1 worth of stock. Today, the Fed rules state that you only need to put up $0.35 of real capital to buy $1 worth of stock in a diversified account: a "diversified account" is one in which no position represents more than 50% of the account's value. This is little known and understood, however, a big house like Merrill Lynch works this way. The %50 rule of thumb applies to most brokerages and equities, hence, the popular use of the measure. Cheers, Keith