A margin call is a request from a brokerage firm for the investor to increase the cash in the account in order to bring the margin back up to the minimum level.

Question

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A margin call occurs when the value of an investor's margin account falls below the broker's required amount. The broker asks the investor to deposit more money or securities to cover the shortfall, ensuring the account meets the minimum margin requirement.

A Margin Call Is a Request from a Brokerage Firm