Cel Sci Corporation (CVM)

[lightrock]

Well, simply speaking...

A margin account adds tremendous leverage (borrowing power) like $200k to your account(s).

So, if you are unscrupulous, you might figure out how to make hundreds of these accounts (or somehow control hundreds, or thousands of them)

For a relative small investment compared to your nuclear arsenal now, you can go out and nuke things, and if you screw up it is white collar crime at worst.

You are supposed to pay it back through successful trading and or add more money to your account(s) to cover the losses.

So for example if you have $1B and you go open a bunch of margin accounts, in theory you can have $10B nuke power. Nuke means whatever you want it to mean, go long, short, whatever. Most of that the broker(s) loan to you.

So... if you screw up and can't pay it back, who eats it ? (Lehman Brothers) - another more convoluted example of similar principles of leverage.