SIE practice questionmediumMargin Account Maintenance
If an account’s equity falls below the maintenance margin requirement, the broker-dealer will:
- AIssue a margin call✓ Correct answer
- BRequire full payment immediately
- CClose the account automatically
- DIncrease the interest rate
Explanation
Why A — Issue a margin call
If equity drops below maintenance, the broker issues a margin call for more funds or securities. Full payment is not required, accounts are not automatically closed, and interest rates are not adjusted.
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