Investors Hangout Stock Message Boards Logo
  • Home
  • Mailbox
  • Boards
  • Favorites
  • Whats Hot!
  • Login - Join Now!
Amarantus Bioscience Holdi AMBS
Posted On: 09/04/2014 11:50:45 PM
Post# of 30066
Avatar
Posted By: Warp
Re: jacmar #5553
Buying stock on margin isn't free money, it's debt. If someone had the ability to buy AMBS on margin and had bought near the recent peak of 0.19, the drastic drop we experienced afterwards would have proven just how costly this "free" money would be. They would have experienced a margin call, and wound up with fewer shares than before their margin purchase. Those buying without margin had the option to simply ride out the downturn. Those with margin shares would be forced to sell either their AMBS shares, shares in other securities, or deposit an amount of cash sufficient to cover the margin call. While margin buying can magnify profits, it can also magnify losses, and the losses can be larger than the amount invested.

Margin adds another level of risk to what is already a high risk investment. Until significant levels of sustainable revenue are generated, or we see substantial big pharma partnership money, the level of risk will remain high, even after we uplist to NASDAQ. Plenty of listed companies fall back to the OTC and pinks. Uplisting is not an automatic success story. I guess I'm just a bit surprised at how some folks view (or fail to view) risk. But, everyone is responsible for their own decisions.













(0)
(0)









  • New Post - Investors HangoutNew Post

  • Public Reply - Investors HangoutPublic Reply

  • Private Reply - Investors HangoutPrivate Reply

  • Board - Investors HangoutBoard

  • More - Investors HangoutMore

  • Keep Post - Investors HangoutKeep Post
  • Report Post - Investors HangoutReport Post
  • Home - Investors HangoutHome
  • Mailbox - Investors HangoutMailbox
  • Boards - Investors HangoutBoards
  • Favorites - Investors HangoutFavorites
  • Whats Hot! - Investors HangoutWhats Hot!
  • Settings - Investors HangoutSettings
  • Login - Investors HangoutLogin
  • Live Site - Investors HangoutLive Site