Friday phrase: Margin Call

[med_cat]

A margin call occurs when the value of securities in a brokerage account falls below a certain level, known as the maintenance margin, requiring the account holder to deposit additional cash or securities to meet the margin requirements.

Margin calls only happen in accounts that have borrowed money to purchase securities.

Source and more info: www.bankrate.com/investing/what-is-margin-call/

Comments

[prettygoodword]

Well, that clears up a few things that confused me in the past. Thanks!

[med_cat]

My pleasure! I'd not heard of that term before, so when it was mentioned in a recent post, I looked it up and thought I'd share :)