The Minimum Equity That Must Be Maintained at All Times

question 90

Multiple Choice

The minimum equity that must be maintained at all times in a margin account is called the:

• A)initial margin.
• B)initial equity position.
• C)maintenance margin.
• D)call requirement.
• E)margin call.

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Definitions:

Equitable Remedy

A corrective action ordered by a court that involves doing or refraining from doing something, as opposed to paying damages, to address a legal wrong or a breach of contract.

Equity Courts

Courts that have jurisdiction over cases involving remedies other than monetary rewards, such as injunctions or specific performance, based on fairness.

Injunction

An equitable remedy whereby the defendant is ordered to perform certain acts or to desist from certain acts.

Natural Law

A body of allegedly existing ethical rules or principles that is morally superior to positive law and that prevails over positive law in case of a clash between it and the natural law.