When the price of a stock declines to the point where the investor's equity is less than the required percentage,the brokerage firm will make a telephone call to the investor telling him or her to immediately either provide more collateral or face having the investment liquidated.This procedure is know as a(n)

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When the equity in an investor's margin account falls below the required percentage, the brokerage firm requires them to immediately add collateral or face having their investment liquidated. This is known as a margin call. A limit order is an investor's instruction to their broker to buy or sell a stock at a specific price or better. An IPO refers to a company's initial public offering, or the first time it issues stock to the public. An odd lot refers to a number of shares of stock that is less than a standard trading unit, which is usually 100 shares.

When the Price of a Stock Declines to the Point