To: go4it who wrote (30052 ) 1/20/1998 4:57:00 PM From: Gerald Walls Read Replies (2) | Respond to
Marginability to my current understanding occurs at $5 and is determined by the Federal reserve board not just share price. I may be incorrect but dillusional is not an option. etrade.com 2. Margin Requirements. Only certain securities, as defined by the Federal Reserve Board or E*TRADE, may purchased on margin or used as collateral in your Account. Whether a purchase may be made on margin, how much of the purchase price must be in your Account at the time you place your order, and your margin maintenance requirements are determined by the Federal Reserve Board, by applicable exchange rules, and by E*TRADE. For our protection, we reserve the right, at any time and without prior notice to you, to impose stricter requirements than those imposed by the Federal Reserve Board or applicable exchange rules. 8. Short Sales. Short sales may only be made in Margin Accounts and are subject to the initial margin and margin maintenance requirements set forth in Section 2, Margin Requirements, above. Any short sale must be designated as such by you at the time you place such an order. In order to facilitate a short sale, E*TRADE must be able to borrow the security that you are selling short to cover the delivery to the purchaser(s). If the stock is recalled by the lender(s) of the securities, E*TRADE will attempt to re-borrow the securities. However, if E*TRADE is unable to re-borrow the securities, E*TRADE may be forced to cover your short position by purchasing the securities on the open market at the then current market price without notice. If a short position is closed out, you will be liable for any resulting losses and all associated costs incurred by E*TRADE. As noted in Section 5, Interest Computation, above, the market value of short securities is treated as a debit to the consolidated Margin Account balance.
