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To: cj who wrote (4236)	5/20/1998 11:35:00 AM
From: Souze	Read Replies (1) \| Respond to of 12617

CJ, Our understandings of the SEC reg may not be all that different. My broker also lets me use the proceeds from a stock sale to immediately purchase another stock. And I can keep rolling the money from one stock to another all day long if I want to. The restriction they impose, and which they say is an SEC reg, is that the initial purchase has to be funded by either cash or the sale of another holding (stock, mutual fund, option, anything else) in time to settle at or before the stock purchase settles. Because of the difference in settlement delays, this allows me to buy a stock one day and pay for it with an option sale two days later - they will both then settle at the same time. I am by no means an expert on this. I am only quoting my broker. I'm clear on what I was told. I cann't swear that what I was told is right, and would appreciate any feedback.

To: cj who wrote (4236)	5/20/1998 11:46:00 AM
From: steve goldman	Read Replies (2) \| Respond to of 12617

You should be able to have the proceeds from the sale immediately available, its is whether you have the cash to make the purchse. ie..you cant open an unfunded account, buy 10k worth of stock, sell it for 100% return, and then simplysay you dont have to make the deposit on the purchase because you sold it and after the sale there is a credit in the account. That doesnt fly. You must meet the purchase of securities with the correct deposit, depending on the stocks loan value, usually 100% or 50%, and cant meet that deposit with the proceeds of the same stock. If youhad 100k in the a/c and bot 100k of stock, sold 105 of stock for 5 gain, you should have the 105 immediately. Trust me, margin is a pain, and I am no pro, we have individuals whose sole job is working this, yet it is important to understand what you can and cannot do. -Steve@yamner.com