If you ignore a margin call, your broker
A) Will create a loan on your behalf to cover the call amount
B) Will sell all of your securities and close your account
C) May place a short sale on your behalf to cover the amount of the call
D) Will increase both margin loan and the rate of interest on that loan
E) May sell some of your securities

Question

Quizplus · Accepted Answer

Ignoring a margin call typically results in the broker taking action to protect their loan. This often involves selling some of the securities in your account to cover the margin call, ensuring they recover the funds loaned to you for investments.

If You Ignore a Margin Call, Your Broker