CFA Practice Question

There are 275 practice questions for this study session.

CFA Practice Question

Minimum maintenance margin is the minimum proportion of ______.

A. equity to the total value of the margined stock
B. the loan amount to the total value of the margined stock
C. the current value of the margined stock to the original purchase price of the margined stock
Correct Answer: A

If the percent margin hits the maintenance margin, a margin call will be issued immediately.

User Contributed Comments 1

User Comment
robbiecow The MM = (Collateral - Loan)/Collateral
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