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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