Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

which of the following is correct regarding to a Margin Call. Select one: A. margin calls won't occur when securities' price increase. B. A broker

which of the following is correct regarding to a Margin Call.

Select one:

A. margin calls won't occur when securities' price increase.

B. A broker has a right to sell all of the investors' securities in case of his/her position declined and not adding more cash to the position.

C. an investors will be notified by the broker to add more cash when his/her ratio of securities' market value (as net of borrowed money) to securities' market value declined bellow Maintenance Margin Requirements.

D. all of the choices are correct.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions