If you ignore a margin call, your broker:
A)will seize all the assets in your account.
B)will close your account.
C)may place a short sale on your behalf to cover the amount of the call.
D)may sell some of your securities to repay the margin loan.
E)will increase both your margin loan and the rate of interest on that loan.

Question

Quizplus · Accepted Answer

If you ignore a margin call, your broker may sell some of your securities to repay the margin loan. This is because the broker needs to protect themselves from the potential losses of lending money to you. It's important to always pay attention to margin calls and communicate with your broker to avoid any negative consequences.

If You Ignore a Margin Call, Your Broker