SIE practice questionmediumMargin Maintenance
If the value of securities in a margin account falls below maintenance margin requirements, what can the broker-dealer do?
- AIssue a margin call requiring the customer to deposit more funds or securities✓ Correct answer
- BLiquidate all other customer accounts
- CIgnore the deficiency
- DReport the customer to the SEC
Explanation
Why A — Issue a margin call requiring the customer to deposit more funds or securities
A margin call is issued. The firm cannot liquidate unrelated accounts or ignore the issue. Reporting to the SEC is not a standard response for margin deficiencies.
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