NASD warns investors as margin debt jumps to record 321.2 bln usd
04.11.07, 2:38 AM ET (AFX)
WASHINGTON Thomson Financial - US securities regulator NASD warned that the amount of debt taken on by investors to buy securities, known as buying 'on margin' reached a record high of 321.2 bln usd in February 2007.
That topped the previous record of 300 bln usd in March 2000, near the peak of the internet stock bubble.
'We are concerned too many investors are unaware they could suffer substantial financial losses by using debt to purchase securities,' said Mary L. Schapiro NASD chairman and CEO.
The regulator's last such warning was in 2003. |