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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: WhoLovesYa who wrote (64694)	12/19/2000 9:06:12 AM
From: Louis Riley	Read Replies (1) \| Respond to of 122087

Well, if you want to nit pick: << Current Margin Requirements Federal Reserve Board Regulation T governs the extension of credit to customers by broker/dealers and includes provisions concerning the initial margin requirements for most types of securities transactions. In general, Regulation T requires 50 percent initial margin for long purchases of marginable equity securities. In addition, Regulation T requires 150 percent margin for short sales of equity securities, of which 100 percent can be from sales proceeds. National Association of Securities Dealers, Inc. (NASD®) Rule 2520 imposes additional margin requirements on customer accounts.5 Rule 2520 generally requires maintenance margin of 25 percent of the current market value for all long positions in marginable equity securities, meaning that the equity must not fall below 25 percent of the current market value of the securities in the account. For a short securities position where the stock sells at $5 per share or above, Rule 2520 requires maintenance margin of $5 per share or 30 percent of the current market value of the stock, whichever amount is greater. In addition, for a short securities position where the stock sells at less than $5 per share, a customer must maintain margin of $2.50 per share or 100 percent of the current market value, whichever amount is greater. Where the same security is carried long and short by the same customer, Rule 2520 permits maintenance margin of five percent of the current market value of the long security. >>