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Technology Stocks : Value America (VUSA) - Another eBay? -- Ignore unavailable to you. Want to Upgrade?

To: bh who wrote (74)	3/31/1999 6:16:00 PM
From: Lao Ou	Read Replies (1) \| Respond to of 734

They only need cash. I am not a VUSA customer. I am not a priceline customer either and I put in my IOI for that one pretty late, around 7:20 pm (est). Hope I can get this one as well.

To: bh who wrote (74)	3/31/1999 8:21:00 PM
From: Gerald Walls	Respond to of 734

If you don't have the cash to buy the shares, will Etrade use margin to cover your purchase? I know they say cash only, but what really happens? You need "Cash or Option Buying Power", not "Free Credit Balance" (actual cash). I know this is true because I got Priceline with something like $541 "Free Credit Balance". You can't buy an IPO (or options or other non-marginable security) on margin, but you can margin other securities to get the cash to buy them with. For instance, with $0 "Free Credit Balance" and $10,000 in marginable securities in your account, you would be able to borrow $5,000 against the $10,000 in securities with which to buy a non-marginable (cash) security. If buying a marginable security you would be able to borrow $5,000 against your current securities and $5,000 against the security that you're buying for a total of $10,000 in purchasing power. Therefore your "Cash or Option Buying Power" would be $5,000 and your "Margin Buying Power" would be $10,000. Note that some volatile securities, especially dot-coms, have had stricter margining requirements placed on them by several of the more popular brokers, including Schwab and E*Trade.