SIE practice questionmediumMargin Requirements - Maintenance
If the equity in a customer’s margin account falls below FINRA’s maintenance requirement, what action must the firm take?
- AAllow trading only in government securities
- BLiquidate the account immediately
- CConvert to a cash account
- DIssue a margin call✓ Correct answer
Explanation
Why D — Issue a margin call
A margin call must be issued, requiring the customer to deposit more funds or securities. Immediate liquidation is not required unless the call is unmet. Conversion or restricting trading is not standard.
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