Losses that are incurred and that cause the participant's balance to fall below the maintenance margin at the end of the trading day is called a _____.

Question

Quizplus · Accepted Answer

When losses are incurred and the participant's balance falls below the maintenance margin, the brokerage firm may issue a margin call, which requires the participant to deposit more funds or securities to bring the account back to the required level.

Losses That Are Incurred and That Cause the Participant's Balance