RE: RE: RE: RE: Kherson I've never gone through the horrors of a margin call so maybe someone can clarify or eliminate this possibility for me. When the margin gets called you get contacted from your broker and warned that a forced sale is about to occur and are given a short period of time to correct the problem. If he is pushed into a forced sale, the broker doesn't care what was collateral or what stock purchases pushed the account beyond the maintenance excess, given that PSN was likely not allowing for much leverage, he could have easily predicted that the broker would liquidate his position.
Here is my question, could this margin call have been a hidden insider trade? What if you knew that your company was in dire straits and you wanted to sell as soon as possible before a bankruptcy but knew that you would get charged with insider trading if it was divulged. Therefore you leverage your shares in your margin account that you know are about to become worthless with a high quality, large maintenance excess etf's with which you have no conflict of interest, and as the share price of your company plummets you know that your broker is going to force the selling of these shares at some point in the future before they become completely worthless.
Can someone with more knowledge on the subject point out why this scenario is not likely?