Margins Cut To 50% in Stock Sales: U.S. Eases Credit Rules to ...
The move reflected the BoardÛªs relief that panic-selling of shares has ended. It was taken in order to pump more funds into the stock market.</br></br>The Board cut margins, the minimum cash down payment required for share purchases, from 70 per cent to 50 per cent. This means that a stock buyer can purchase 40 per cent more shares for the same amount of cash.</br></br>Yesterday, a man with $1000 could buy 100 shares of a stock selling at $14.25 and borrow the difference. Today, he can buy 140 shares of the stock and borrow the remaining $1000 he will need.</br></br>rfiÛªi Wuen ,the stock market fell sharply, officials in the i^el?.npdy -Administration and Wall street figures urged the Board to use its power to reduce margins.</br></br>However, the Board typically does not act while a downswing is gathering momentum, reasoning that it å£ap * be stopped by making credit easier. Moreover, the Board did not want to give