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Basic Question 6 of 16
What will the broker do if you do not act when you get a margin call?
B. Sell your stock
C. Provide additional funds
D. Change the margin requirement
A. Call the SEC
B. Sell your stock
C. Provide additional funds
D. Change the margin requirement
User Contributed Comments 10
| User | Comment |
|---|---|
| eb2568 | I wish it were answer C!! |
| Fotsta | or D? |
| Mutsa | lol |
| JakeZ | call your parents |
| Bududeen | bunch of wishful thinkers |
| dipu617 | :-) |
| HolzGe1 | love A. |
| ldfrench | He will call the Fed and you'll have Janet yellen at you! *ba dum tsss* (I'm here all week, folks) |
| ascruggs92 | D. - "Hey, it's your broker. Your margin balance is below the minimum now that the market crashed, so we just wanted to let you know that we lowered your minimum! Don't lose anymore money or we'll have to lower it again. K thanks!" I don't think that's what happens |
| MathLoser | That guy above said "Janet Yellen" . |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
compare positions an investor can take in an asset
calculate and interpret the leverage ratio, the rate of return on a margin transaction, and the security price at which the investor would receive a margin call
CFA® 2024 Level I Curriculum, Volume 3, Module 1.