If an investor buys stock on margin and the price of the stock rises, the investor will not receive a margin call from the broker.

Name: If an investor buys stock on margin and the price of the stock rises, the investor will not receive a margin call from the broker.
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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. If the stock price rises, the value of the investment increases, reducing the likelihood of a margin call.

If an Investor Buys Stock on Margin and the Price