Margin call

A margin call occurs when the value of securities in a brokerage account falls below a certain level, known as the maintenance margin. When this happens, the broker alerts the account holder to deposit additional cash or securities to meet the margin requirements. If you aren’t able to meet the margin call fast enough to satisfy your broker, it may be able to sell securities without your permission in order to make up for the shortfall.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Today's Financial Message

Join us at The Wealthy Thinker!

Welcome new reader! Join our newsletter for expert financial tips and make the most out of your money!

Join us at The Wealthy Thinker!

Even the rich and famous have money mishaps.

Welcome new reader! Join our newsletter for expert financial tips and make the most out of your money.