If Maintenance Margin Is Not Maintained, the Broker Will

question 91

Multiple Choice

If maintenance margin is not maintained, the broker will:

• A) sell sufficient securities to ensure the portfolio is compliant with maintenance margin requirements.
• B) sell sufficient securities to ensure the portfolio is compliant with initial margin requirements.
• C) contact the investor with a margin put.
• D) contact the investor with a margin call.

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Definitions:

Seeking Information

The act of looking for or attempting to acquire data and facts to increase knowledge or understanding.

Social-Comparison Explanation

A hypothesis positing that people assess their own value and societal position by comparing themselves to others.

Polarization in Groups

The process by which opinions within a group grow increasingly extreme, splitting the group into opposing sides.

Extreme Decisions

Decisions made under conditions of high uncertainty, risk, or stress, often with significant consequences.