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To: Lucretius who wrote (33952)4/15/1999 10:25:00 PM
From: TheStockFairy  Read Replies (4) | Respond to of 86076
 
Ok, I want to put this out there for comments..

I was standing in this guys office when he called his broker. His broker said that stocks are down and that it is time to go "shopping."

His broker mentioned that he owned 500 shares of beyond.com and that it was upgraded today. My coworker responded "How much money do I have to play with?" The broker went into a little speech about how stocks had dipped and that he only had a few K to work with. The broker then mentioned margin.

My coworker asked what was margin all about, and the explanation was that it was kind of like a credit card that you can pay back with your gains. He said "OK, put me down for 500 more shares of beyond.com."

Total tab for this transaction..(I am not kidding in the least bit) $400 in fees and commissions.

OK, what did my coworker do wrong?