If maintenance margin is not maintained, the broker will:
A) sell sufficient securities to ensure the portfolio is compliant with maintenance margin requirements.
B) sell sufficient securities to ensure the portfolio is compliant with initial margin requirements.
C) contact the investor with a margin put.
D) contact the investor with a margin call.

Question

Quizplus · Accepted Answer

If the maintenance margin is not maintained, the broker will issue a margin call to the investor, requiring them to deposit additional funds or sell securities to meet the margin requirements.

If Maintenance Margin Is Not Maintained, the Broker Will