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To: AJBurl who wrote (2120)12/10/1997 7:40:00 PM
From: MoonBrother  Read Replies (1) | Respond to of 9582
 
By SEC rule, a stock is only marginable when its value is above $5. If the price falls below $5, then the stock holders will have to pay the full price instead of maybe only 50%. If they can't afford to pay the whole price, they will be forced to sell their positions. That's why you always see some relatively heavy sellings when a stock's price drops to near $5 mark, especially if the stock's original price was much higher than $5.

Hope this helps.

MB