Economics · Margin Account

Which of the following best describes a 'margin call' in financial markets?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1A regulatory penalty imposed on a financial institution for exceeding leverage limits
2A company's notification to shareholders regarding the distribution of quarterly dividends
3An investor's request to a broker to execute a stock trade at a specified market price
4A broker's demand that an investor deposit additional cash or securities to meet minimum equity requirements✓

Correct answer

A broker's demand that an investor deposit additional cash or securities to meet minimum equity requirements

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