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SIE: Account Types
SIE practice questionmediumMargin Account Maintenance

If an account’s equity falls below the maintenance margin requirement, the broker-dealer will:

  1. AIssue a margin call✓ Correct answer
  2. BRequire full payment immediately
  3. CClose the account automatically
  4. DIncrease the interest rate
Explanation

Why AIssue 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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