The minimum equity that must be kept at all times in a margin account is called the _____ that is an established value cannot fall below.
A) Initial margin
B) Initial equity position
C) Maintenance margin
D) Call requirement
E) Margin call

Question

Quizplus · Accepted Answer

The minimum equity that must be kept at all times in a margin account is called the maintenance margin. This is an established value that cannot fall below, as it indicates the minimum amount of equity required to keep the account in good standing. The initial margin refers to the initial amount of equity required to open a position, while the call requirement and margin call both refer to situations where additional funds are required to be deposited into the account due to a decrease in equity. The initial equity position is not a commonly used financial term.

The Minimum Equity That Must Be Kept at All Times