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To: Steve Hufnagle who wrote (331)1/31/1998 1:21:00 PM
From: Brett Nelson  Respond to of 1205
 
Steve - My understanding is that you will receive a margin call. I had this happen once in a stock I purchased on margin while it was at 5 1/4. When the stock traded to 4 1/2, I was told it was un-marginable and I was forced to increase my cash position to cover it. Perhaps my experience was anomalous, but that's how it happened.
Good luck,

Brett



To: Steve Hufnagle who wrote (331)1/31/1998 1:44:00 PM
From: Roger A. Babb  Read Replies (1) | Respond to of 1205
 
Steve, the margin rules vary from broker to broker. But generally, when the price drops below the margin requirement it ceases to be counted as marginable for additional margin purchases but continues to be marginable for "maintenance" purposes. Check with your broker for details.