Web Brokers Put Investors on Tighter Leash
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Concerned that online investors may be overextending themselves to purchase volatile Internet stocks, many online brokerages are imposing new restrictions on using borrowed money to pay for them.
DLJdirect is also limiting its customer's borrowing. The company said its clients can only borrow 50 percent of their portfolio's value and 90 percent of the value of bonds they hold.
Industry experts say the moves reflect brokers' concerns that individuals are overextending themselves financially to purchase Internet stocks and other high-flyers.