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Strategies & Market Trends : Margin Calls - Share The Pain -- Ignore unavailable to you. Want to Upgrade?

To: daffodil who wrote (91)	12/2/2000 9:29:13 PM
From: daffodil	Read Replies (1) \| Respond to of 158

Maintenance margin on short sales of common stock The basic NYSE/NASD requirement is: 1) for stocks $5.00 and over: 30% of the short position or $5.00 a share, whichever is higher 2) for stocks less than $5.00 per share: 100% of the short market value or $2.50 a share, whichever is higher. Examples: A. Position = short 1,000 shares @ $50 Short market value = ($50,000) 30% = $15,000 $5.00 per share = $5,000 Therefore, the maintenance requirement is $15,000. B. Position = short 10,000 shares @ $ 5 Short market value = ($50,000) 30% = $15,000 $5.00 per share = $50,000 Therefore, the maintenance requirement is $50,000 C. Position = short 10,000 shares @ $4.50 Short market value = ($45,000) 100% = $45,000 $2.50 per share = $25,000 Therefore, the maintenance requirement is $45,000 C. Position = short 50,000 shares @ $1.00 Short market value = ($50,000) 100% = $50,000 $2.50 per share = $125,000 Therefore, the maintenance requirement is $125,000