Apple's Shares Getting ClobberedSubmitted by emalvini on Wed, 12/05/2012 - 12:28
Apple's Shares Are Getting Clobbered
Dec. 5, 2012, 10:29 AM
Apple's stock is down as much as 4.25 percent this morning.
Why? Street Insider is speculating that "clearing firms are raising the margin requirement for clients," and this is causing Apple's stock to nosedive.
A higher margin requirement means investors need to either put up more of their own money to buy Apple stock, or just sell what they have so they don't have to put in more cash. Margin requirement increases generally happen when a stock becomes volatile. For a long time Apple was a rocketship. Now it's not, so a change in margin requirements makes sense.
AAPLDec 05 11:30AM