SIE practice questionmediumMargin Requirements - Maintenance
A margin account drops below maintenance requirement and the client does not meet the margin call. The broker-dealer:
- AMust close the account immediately, even if the account is above Reg T
- BMay ignore the deficiency until the next cycle
- CCan allow unlimited time to deposit funds
- DMust liquidate assets to cover the shortfall✓ Correct answer
Explanation
Why D — Must liquidate assets to cover the shortfall
Broker-dealers must take prompt action to protect against deficit by liquidating positions. Ignoring deficiencies or giving unlimited time is not permitted, and immediate closure is not always required.
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