Margin calls are more likely to happen when markets are:

Name: Margin calls are more likely to happen when markets are:
Brand: Quizplus
Rating: 4.7 (56 reviews)

Question

Quizplus · Accepted Answer

Margin calls occur when the value of the securities held in a margin account falls. During a crash, the value of securities can fall rapidly, increasing the likelihood of a margin call. In a booming market or stable market, the value of securities may continue to rise, reducing the risk of a margin call.

Margin Calls Are More Likely to Happen When Markets Are