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Don

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Alias Born 01/06/2008

Don

Re: Babubd post# 72056

Tuesday, 04/19/2022 2:24:18 PM

Tuesday, April 19, 2022 2:24:18 PM

Post# of 107142
With regard to AABB (penny stock) margin calls...please see the following :

Summary
1 Non-marginable securities cannot be purchased on margin and need to be funded with the investor’s cash.
2 The securities exist to protect investors by reducing the risk that comes with purchasing securities with leverage.
3 Non-marginable securities include penny stocks, OTC stocks, and recent IPOs, as the securities tend to be riskier due to higher price volatility and lower liquidity.
4 Using margin can amplify returns but significantly increases losses when the price of the underlying security does not move in the expected direction.

https://corporatefinanceinstitute.com/resources/knowledge/trading-investing/non-marginable-securities/

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