Replies to post #252791 on Plastic2Oil Inc (PTOI)

[Rawnoc]

Actually you're all wrong. You can't use JBII on margin to buy something else, but you can buy JBII on margin.

If for example I'm all in a Dow stock, I can still buy JBII on margin. If I'm all in JBII, I can't buy a Dow stock on margin.

In other words, margin = collateral. You can buy JBII on margin, but you can't use JBII or any OTC as margin to buy something else.

[Steady_T]

Ummmmm. No.

"If I have a margin account and purchased 20,000 shares of JBII on margin those shares are available to borrow against."

[loanranger]

Please clarify. Do I have this right?

Assuming that I have established a margin account:
Certain stocks ("marginable stocks") in that account create value in excess of their market price. That value can be accessed in the form of a loan from the broker holding the account in order to buy additional securities. JBII is not a marginable stock...it doesn't create such additional value....however it can be purchased with such a loan.

And this:
"Most brokers won't let you buy stocks under $5 on margin.
Most brokers won't let you buy ANY OTC stock on margin regardless of the price."
which deals, however inaccurately, with BUYING shares...


was not responsive to this:
"If I have a margin account and purchased 20,000 shares of JBII on margin those shares are available to borrow against."
which deals with buying JBII by borrowing against OTHER holdings and lending them.



Please correct any of the above that needs it.

TIA