If the value of the securities that you borrowed money from your broker to purchase falls, you may receive a:
A) maintenance margin call
B) margin call
C) limit order call
D) specialist call

Question

Quizplus · Accepted Answer

When the value of the securities you have purchased with borrowed money falls below a certain threshold, known as the maintenance margin, your broker will issue a margin call. This means you will either need to deposit additional funds or securities to bring your margin account balance back up to the required level, or your broker may sell securities in your account to cover the shortfall. A limit order call and specialist call are not relevant in this scenario.

If the Value of the Securities That You Borrowed Money