If an investor's margin account goes down in value,what may a stockbroker do?

Question

Quizplus · Accepted Answer

If an investor's margin account goes down in value, the stockbroker may issue a margin call, which is a demand for the investor to deposit more funds or securities into the account to bring it back up to the minimum margin requirement. This is done to protect the broker from potential losses and ensure that the investor has enough equity to cover the margin loan. Co-signing a loan or moving the account to another brokerage house may not necessarily address the issue of insufficient margin, and closing the account may not be the best course of action if the investor still wants to maintain their position in the market.

If an Investor's Margin Account Goes Down in Value,what May