The frequency with which margin accounts are adjusted for gains and losses is
A) Daily
B) Weekly
C) Monthly
D) Quarterly

Question

Quizplus · Accepted Answer

Margin accounts are typically adjusted on a daily basis to reflect gains and losses. This helps ensure that the account maintains the required margin level and that the investor has sufficient funds or securities to cover any potential losses. Daily margin adjustments also help prevent margin calls, which can occur when an account's margin level falls below a certain threshold. By adjusting margins daily, brokers can help investors manage their risk and ensure that their accounts remain in good standing.

The Frequency with Which Margin Accounts Are Adjusted for Gains