Replies to post #72056 on Asia Broadband Inc (AABB)

[Don]

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/