They show it on your account because you have a margin account. If you buy a stock $3.00 and above, depending on the stock, will depend on how much they'll allow you to borrow. A solid company, and you can borrow 4X the cash you have in your account. The riskier the security is, the less amount you can borrow. Etrade has marginal securities listed if you check. I made a killing using margin back when the Dow was having 600 point swings. That was insane.