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To: Bilow who wrote (119508)	3/6/2001 5:40:04 PM
From: Kevin Podsiadlik	Read Replies (1) \| Respond to of 164684

I recall that Livermore's trading experiences were largely with "bucket shops" not brokerages. In the early going, yes (until the bucket shops blacklisted him, in much the way casinos are said to blacklist card counters at blackjack), but I was referring to Livermore's first "real" brokerage experience, just after he hit his first serious setback and was back to flat broke. In the dialogue Jesse asks to borrow $500 from the brokerage owner, who responds by saying that he'd need $1,000 to margin 100 shares of stock (back then most stocks had a "par" value of $100 they tended to gravitate towards) because of the 10% margin requirements. Obviously Jesse was on good terms with the brokerage, good enough to gain an audience with the owner, but at the same time he was flat busted and a newcomer, hardly a "powerful and wealthy client". As for the bucket shops, Livermore's first "trade" there consisted of leveraging 5 shares using only a $5 stake, which would imply a "margin requirement" of only 1% there.