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Can somebody explain a maintenance/margin call using my example?

April 26, 2017Business explain Finance Investing maintenance margin call

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Can somebody explain a maintenance/margin call using my example?

1 Answer

0

10 Posted

<<>> For some reason the stock went from being marginable to not being marginable, probably because the price per share went below $5.00 per share. When a stock is not marginable, your broker will no longer accept the stock as collateral for a loan, so you got a margin call for the total amount your broker has loaned you, including commissions, fees (if any) and interest. The Securities and Exchange Commission (SEC) sets minimum standards for margin, but allows individual brokerages to set higher standards. If you are going to use margin it is critical for you to understand how to determine your margin requirements at the particular brokerage you are using. Since margin requirements vary by brokerage, you must get that information directly from the brokerage. <<>> No. <<>> $4,861, plus a few dollars for any additional interest since you got the notice. Also, i