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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: H James Morris who wrote (45806)3/15/1999 3:22:00 PM
From: Lizzie Tudor  Read Replies (2) | Respond to of 164684
 
James I know, I was asking about the rules the online brokers are placing on the internet stocks - just to gauge possible swings in efax. I notice that since the margin requirements went to 100% on amzn and ebay, they tend to swing less.... it might be more a function of the size of those issues, I don't know.

I have 2 stocks (dclk and gnet) which for some reason Discover allows 50% margin, whereas for amzn and bcst no margin is allowed. I have no idea what the criterion for this is. Dclk is at least as volitile as bcst.

If I wanted to trade these in my full service account I would have no problem with margin, you are right.

Michelle



To: H James Morris who wrote (45806)3/15/1999 3:38:00 PM
From: Jan Crawley  Read Replies (3) | Respond to of 164684
 
I don't understand what you mean about eBay or Amzn not being able to margin.. If you have sufficient

James, it sorta works this way, and it applys to most of the on-line brokers:

If you have 9K shares of C in one of your on-line accounts, your total Market value(equity) for that account is over $500K. Normally, your buying power, using the 5K City bank shares as a marginable base, will exceed $1 Million. Correct? Therefore you can buy lots of Amzn/Yhoo...etc..

However, if your Account has 4K Amzn(or Yhoo) shares, therefore the market value is also over $500K. But you may not be able to buy too many additional Amzn/yhoo shares using the same buying power(supposedly $1M), because Yhoo/Amzn are not marginable.