|
Equities
| Stock (Listed
or Federally
Approved
OTC) |
50% of
net amount |
| Short Sale
Equities |
50% of
net proceeds |
Bonds
| Corporate
Convertible
(Listed or
Federally
Approved
OTC) |
50% of
net amount |
| Corporate
(Listed or
Federally
Approved
OTC) |
30% of
net amount |
| Municipal
Bonds |
25% of
net amount |
| U.S. Government
(Bills, Notes,
Bonds, Zero
Coupons,
Strips) |
10% of
net amount |
| U.S. Government
Agencies
(e.g. GNMA,
FNMA) |
24% of
net amount |
| Notes: |
There is
a $2,000
minimum initial
margin requirement
for most
margin transactions. |
| Equities
selling for
less than
$5 per share
are generally
not marginable. |
| Interest-paying
bonds trading
below $40
per bond,
and zero
coupon bonds
trading below
$10 per bond,
generally
are not marginable. |
Equities
|
Stock
(Listed
or Federally
Approved
OTC)
|
30% of
market value |
| Short Sale
Equities |
30% of
short market
value or
$7.00 per
share
whichever
is greater
|
Bonds
| Corporate
Convertible
(Listed or
Federally
Approved
OTC) |
30% of
market value |
| Corporate
(Listed or
Federally
Approved
OTC) value |
30% of
market |
| Municipal
Bonds |
15% of
market value |
| U.S. Government
(Bills, Notes,
Bonds, Zero
Coupons,
Strips) |
10% of
market value |
|
U.S. Government
Agencies
(e.g.,
GNMA, FNMA)
|
14% of
market value
Amount |
Concentration
Requirements
Accounts which
contain a single
position of 75%
or more of the
account's value
are subject to
the following
more stringent
maintenance margin
requirements.
| Number
of shares |
Maintenance
Requirement |
|
0
- 25,000
- shares
|
50%
of market
value |
|
25,001-
50,000
|
60%
of market
value |
|
50,001-
75,000
|
70%
of market
value |
|
75,001-
100,000
|
80%
of market
value |
|
100,001-
shares
and more
|
90% of market
value |
Options
Options are
not marginable
and have no loan
value. Options
therefore require
payment in full
on the settlement
date (next business
day after trade
date).
Margin
Calls
PrimeVest will
issue a margin
call if the equity
balance drops
below the minimum
maintenance margin
requirement.
Customers are
required to immediately
deposit the amount
required to bring
the equity balance
above the minimum.
A margin call
can be satisfied
by:
- Depositing
cash equal
or greater
to the call
amount.
- Depositing
margin-eligible
securities
with a market
value of at
least twice
the call amount.
- Selling
margin-eligible
equities and
depositing
enough cash
and securities
to meet the
call and the
initial deposit
requirement
for the new
securities.
If a customer
is unable to
satisfy a margin
call or minimum
equity requirement,
PrimeVest is
required to sell
enough securities
to bring the
equity balance
above the minimum.
|
