When a brokerage firm demands more collateral from investors who have borrowed from the brokerage firm to buy stocks, it is making a
A)margin call.
B)short sale.
C)proxy fight.
D)hedge.

Question

Quizplus · Accepted Answer

A margin call occurs when the value of an investor's margin account falls below the broker's required amount. The brokerage firm demands the investor deposit more money or securities to cover the potential loss, ensuring the loan value is adequately collateralized.

When a Brokerage Firm Demands More Collateral from Investors Who