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Canadian Securities Course (CSC) Practice Exam · Question

Mr. Lee is considering purchasing shares on margin. His investment advisor explains that according to CIRO rules, he will need to maintain a certain level of equity in his margin account. This requirement is known as the:

The maintenance margin requirement specifies the minimum percentage of equity that must be maintained in a margin account relative to the market value of the se

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Question: Mr. Lee is considering purchasing shares on margin. His investment advisor explains that according to CIRO rules, he will need to maintain a certain level of equity in his margin account. This requirement is known as the:

Answer options:

  • Margin call threshold ✅ Maintenance margin requirement
  • Initial margin requirement
  • Settlement balance

Correct answer: Maintenance margin requirement

Explanation: The maintenance margin requirement specifies the minimum percentage of equity that must be maintained in a margin account relative to the market value of the securities, as per CIRO Rule 5100.

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