An investor receives a margin call from the broker when:
A) The investor's margin account falls below the initial margin but is still above the maintenance margin..
B) The investor's margin account falls below the minimum maintenance margin.
C) The investor's margin account reaches zero.
D) b and c.
E) All of the above.

Question

Quizplus · Accepted Answer

A margin call occurs when the investor's margin account falls below the minimum maintenance margin (B) or when the account balance reaches zero (C), necessitating additional funds to meet margin requirements.

An Investor Receives a Margin Call from the Broker When