If You Ignore a Margin Call, Your Broker

question 21

Multiple Choice

If you ignore a margin call, your broker

• A) Will create a loan on your behalf to cover the call amount
• B) Will sell all of your securities and close your account
• C) May place a short sale on your behalf to cover the amount of the call
• D) Will increase both margin loan and the rate of interest on that loan
• E) May sell some of your securities

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Definitions:

Independent Paralegal

A paralegal who works directly for the public rather than under the supervision of an attorney, offering legal document preparation and procedural guidance.

Freelance Paralegal

A paralegal who works independently, offering services on a contract basis to lawyers or law firms.

Legal Technician

A professional trained to assist with certain legal matters and documentation but not licensed to practice law.

Unauthorized Practice of Law

The unauthorized practice of law involves providing legal advice or representing someone in a legal matter without being licensed to practice law in that jurisdiction.