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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (11852)	12/1/1998 9:42:00 AM
From: Baldwin	Read Replies (4) \| Respond to of 19331

Colin, I have completed my "assignment." I believe your original intent in even broaching the subject of type 1 & 2 accounts was to inform the masses here that bulletin board stocks are not marginable (i dare say most already know that...a subject discussed many times on this thread already). I can't believe anyone here is actually INTERESTED in what my broker at Merrill Lynch had to say...but a promise to report back is a promise. My apologies to ALL ON THIS THREAD for boring you with this subject once again. My questions and her answer (verbatim) follow. And Colin, one more thing, i don't have time to play today (GGGGGGGGGG). My questions: Is my "regular" (not IRA) account type 1 or type 2? > > If, in fact, bulletin board stocks cannot be on a type 2 account, then > does my > "regular" account statement reflect holdings in two different accounts > due to > bulletin board holdings? (I can see that the bb stocks are subtracted out > of > the "purchasing power" figure). Her answer: "our margin control department assigns margin values to stocks that are on the federal reserve's marginable securities list...as i understand it, they (the fed) make their decisions based on the stock price over a predetermined period. for us here, we have to physically turn on the margin button once a stock is determined to be marginable....i have no clue what your fellow investor is getting at...all your non-ira assets are held in the same account and show on the same statement.....other firms may do it differently, but i've never seen an account statement from elsewhere that distinguishes between the two different classes of stock......any other details? one thing that does come to mind is that we determine at the outset whether or not the client wants or will ever need a margin line based on the value of his/her securities....i open most central asset accounts (like yours) with a margin capability...but some folks want only what we call a cash account....no margin line....they don't want to be tempted....imagine living without credit...hope this helps....ab" In other words, they track the marginable stocks internally at Merrill, and the fact that type 1 vs. type 2 is visible to some and not others is ENTIRELY IRRELEVANT.