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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: DianaX who wrote (22962)	8/23/1998 3:35:00 PM
From: MARK C.	Read Replies (2) \| Respond to of 50264

Diana, Buying on margin and being marginable are two different animals. I have bought a lot of DGIV on margin also but to my knowledge it is not marginable at this time and has never been. Marginable meaning a stock who's value a brokerage firm will loan monies against to purchase other securities. You have not received a margin call because the value of your other securities in your portfolio which are marginable is greater than the amount you have borrowed. All that is necessary to prove this is to call your broker and ask what your margin loan is and subtract that from the total value of your portfolio counting cash of course. Then ask him what your margin buying power is and you will find it will be short the value of DGIV and any other non marginable stocks you may own. Example: if your total portfolio has a value of $100,000 and in that you own $20,000 of DGIV you will only have the ability to buy $80,000 of stock on margin since DGIV is not marginable. Hope that helps. MarkC.

To: DianaX who wrote (22962)	8/23/1998 3:41:00 PM
From: The Street	Respond to of 50264

Talk about a black hole! As far as I can tell if your broker let's you margin a stock, you can short it. Supposedly the Fed Res Board says what OTC BB's can be margined, thus shorted. Basically, any stock listed on NASDAQ, NYSE, and AMEX can be shorted. To short a stock you have to have a margin account. Also, it seems that if you own a stock, you can short it (against the box), but again this is a little foggy. I give up-- I will make some phone calls instead. I am more confused than when I started. The only thing I did find in SEC laws is that MM can short a stock naked. (Wish I could work in a MM firm-- but only if women were there. Wonder id the secretaries have to be naked, or just the broker doing the naked short. Hmmmm..)