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| | Margin calls flood in, hurt late market trading - Apr. 4, 2000 |
 | | But when stocks take a dive and brokers call in this borrowed money, or margin, investors are required to pony up extra money or sell some of their stock to cover the losses. |
 | | "Margin calls tend to precipitate a sell-off, and you've got to figure that part of this action today was due to the initial thrust of the margin calls' feeding the selling," said Vince Farrell, chief investment officer at Spears Benzak Salomon and Farrell. |
 | | Meanwhile, shares of brokerage firms including Charles Schwab (SCH: Research, Estimates), the leading online broker, slipped 7-5/16 to 49-5/8 on the day, and E*Trade Group Inc. (EGRP: Research, Estimates) lost 3-1/16 to 24-3/8 amid investor jitters that brokerages could be saddled with losses from investors who fail to repay their loans. |
| money.cnn.com /2000/04/04/investing/margin (839 words) |
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