If You Ignore a Margin Call, Your Broker

question 68

Multiple Choice

If you ignore a margin call, your broker:

• A)will seize all the assets in your account.
• B)will close your account.
• C)may place a short sale on your behalf to cover the amount of the call.
• D)may sell some of your securities to repay the margin loan.
• E)will increase both your margin loan and the rate of interest on that loan.

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Definitions:

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