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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (3131)	10/21/2000 11:54:43 PM
From: Bilow	Respond to of 3543

Hi Mad2; Re what stocks losers sell when they get a margin call... While I've only seen retail margin calls sent to a trader a half dozen times or so, (intraday margin calls are extremely common, but not very important) I'm pretty sure that the financial calculations cause similar behavior in other brokerages. It makes an impression on you. First the "24" calls the guy in and tells him he has a margin call. Then they talk about how much stock he has to sell in order to meet that call. I'm not guessing, I've heard them make the calculations. The "trader" decides to sell the minimum amount to cover the call. Then the "trader" (really not a trader, but a bad investor) goes over to his terminal and sells the stock. Then he verifies with the firm that he met the call. This happens repeatedly, until the guy busts out. Then you don't have to listen to his sorry @$$ed bitching and moaning (complaints about the brokerage, accusations at the market makers, complaints about the lighting, etc., etc., as well as his loser stock ideas) any more. My guess is that full service brokers go through the same calculations with their mom and pop clients, and end up doing the same thing. -- Carl