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To: Cavalry who wrote (195)	8/3/1998 2:29:00 AM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 253

Cavalry, I'm not the ideal person to respond to your questions on the various types of accounts. My own personal accounts are all cash accounts. No margins, period. Yes, it reduces my opportunities, but it also keeps me from making any mistakes on borrowed money. Perhaps one of the thread lurkers is better informed than I am. KJC

To: Cavalry who wrote (195)	8/3/1998 9:11:00 AM
From: Phil(bullrider)	Respond to of 253

Cav, I'll attempt to answer one of your questions. Margin account. Basically, you open an account with your broker, put up at least the minimum amount of money your broker will allow, and then you can buy twice that amount of stock. For example, if your broker has a two thousand dollar minimum for a margin account, you put up two thousand, and you can buy four thousand dollars worth of stock. Now, keep in mind that wherever the price of the stock goes, the amount of the margin stays the same, except when the interest is added. You will receive a margin call if the value of your stock declines to the point where your portion of the value of the stock is less than 30%. Another example. Lets say you buy 100 shares of XYZ, @ $40. for a total of $4,000. If the price of XYZ declines to $34., you now have only $3,400 in stock instead of $4,000, so you will be forced to add enough cash to bring your portion of the account back to the 50% level, or to sell some of the stock. If I am wrong on any of this, I am sure someone will tell us, but I think my percentages are correct. I hope this helps, Phil