Avid Bioservices Inc (CDMO)

[pphmbull]

There have been several comments on the board about the MM's squeezing out retail investors on margin.

I learned a while ago that buying on margin doesn't let me sleep well. However, the other day I decided to add 5000 more shares on a dip and did so on margin knowing that I would fund my account with enough to cover it.

My Etrade account accepted my order but then my available margin amount disappeared and a margin call was issued the next day. I sent funds to cover and no problem.

However, it makes me wonder. (forgive my inexperience)

Why woyuld an order be accepted and with no downward movement of my account balance, would a margin call be in order? I would think that if the shares weren't margin able, the system wouldnt even accept the order in the first place. I would appreciate it if someone could help me understand.

Also, do you think that this situation could be happening in large numbers, and with people who can't cover the next day margin call? Just wondering if this might be a part of the downward pressure on the low volume we have seen in the past few days. Thanks!