A _______ is a call issued by your brokerage firm asking for more funds when your equity position in a security is less than the required amount.
A) margin call
B) hypothecation agreement
C) short sale
D) maintenance requirement
E) call money sale

Question

Quizplus · Accepted Answer

A margin call is a request for additional funds from a brokerage firm when a trader's equity position in a security falls below the required maintenance margin. This occurs when the value of the investment drops and the trader no longer has enough equity to cover potential losses. The additional funds, usually in the form of cash or securities, are required to bring the account back up to the minimum level required by the firm.

A _______ Is a Call Issued by Your Brokerage Firm