could someone explain what i can do with that money?
2007-07-13 07:00:40 · 5 answers · asked by zesty 3 in Business & Finance ➔ Investing
You must have a margin account. Perhaps you don't understand that,,
Be careful, if you use the entire line and anything drops, you will have an immediate margin call....and need to come up with cash quick or sell some stocks fast, regardless of profit or loss...
2007-07-13 07:05:16 · answer #1 · answered by CommonCents 4 · 1⤊ 0⤋
You can buy stock with the money. It's the total of what you can buy with the cash in your account plus the money that they will lend you based on the securities held in your account, assuming that you put up only the minimum margin requirement.
2007-07-13 07:16:19 · answer #2 · answered by Ted 7 · 0⤊ 0⤋
This is how much stock a broker will allow you to purchase at once. When you first hire a broker they will set a maximum number of shares or $ amount because they don't know what to expect from you as far as giving them the funds for the purchase. The more you trade with them the higher your buying power goes.
2007-07-13 07:06:27 · answer #3 · answered by clemenza222 3 · 0⤊ 2⤋
Leave the cash in the money market the market could fall soon. Then the cash will be their to buy...
2007-07-13 07:06:55 · answer #4 · answered by Gerald 6 · 0⤊ 2⤋
sounds like your brokerage company is allowing you to buy on credit and/or on margin. Read up on it before you do it.
2007-07-13 07:03:27 · answer #5 · answered by John M 7 · 1⤊ 1⤋