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Select all of the following statements that are true in regards to margin calls: A margin call occurs when the value of an investor's margin
Select all of the following statements that are true in regards to margin calls: A margin call occurs when the value of an investor's margin account falls below the broker's required minimum threshold. More concentrated portfolios are less likely to be involved in a margin call. A margin call is a formality that an investor can ignore without penalty. The Federal Reserve Board determines the rules for when margin calls should be made. Investors with a large enough portfolio (typically hedge funds) can have a notable impact on the securities when their position is liquidated and cause ripple effects throughout the market. A margin call is made when the value of an account rises, so the investor needs to take capital out to stay below the maximum margin. The firm enforcing the margin call has the right to liquidate your current positions in the market without consultation if you are unable to deposit enough cash. A margin call can lead to the investor having to put up unrelated assets for collateral.
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