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To: Investor2 who wrote (2355)	12/3/1998 8:53:00 PM
From: Justa Werkenstiff	Respond to of 15132

I2: Most brokerages that I know of have a 30-40% margin maintenance requirement on marginable stocks. A margin maintenance percentage requires you to have a certain percentage of equity over and above your total account value including margined positions. Thus, as opposed to a 50% requirement, you have that much more leeway before you get a margin maintenance call with a 30-40% requirement. Now with the internet stocks at Schwab and other houses I presume, if your equity drops below 50%, you have to come up with the cash or liquidate positions to raise the cash in order to meet the margin requirement. Otherwise, your brokerage house will sell you out to raise the cash for you. This requirement is aimed at curbing the amount of speculation in that sector and it is good news for the market.

To: Investor2 who wrote (2355)	12/3/1998 9:22:00 PM
From: Math Junkie	Read Replies (1) \| Respond to of 15132

Subtract the amount you owe to the brokerage from the total market value of your holdings. That is your equity. If your equity falls below the specified percentage of your total holdings (in this case 50%), then I believe the brokerage will give you 3 days to either come up with the cash to get your equity back within limits, or to sell enough securities to accomplish it. If you have not done so within three days, then they can sell your securities for you.