Margin Call


When a broker requires an investor that is using margin to add additional deposit funds so that the margin account returns to the minimum maintenance margin amount. Margin calls happen when your account value drops to a value below that allowed by a broker.  For example, if a stock, purchased on margin, drops in value, the amount of your money in an account may drop below the specified percent of the investment that you agreed to when you chose to buy the stock with margin.

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