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Canadian Securities Course (CSC) Practice Exam · Question

In a margin account, if the equity in the account falls below the minimum margin required, the client may receive a:

A margin call occurs when the value of the securities in a client's margin account drops to a point where the equity falls below a specified maintenance margin,

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Question: In a margin account, if the equity in the account falls below the minimum margin required, the client may receive a:

Answer options: ✅ Margin call

  • Dividend payment
  • Interest rebate
  • Stock split notification

Correct answer: Margin call

Explanation: A margin call occurs when the value of the securities in a client's margin account drops to a point where the equity falls below a specified maintenance margin, requiring the client to deposit additional funds or securities.

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