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If You Ignore a Margin Call, Your Broker

Question 68

Multiple Choice

If you ignore a margin call, your broker:


A) will seize all the assets in your account.
B) will close your account.
C) may place a short sale on your behalf to cover the amount of the call.
D) may sell some of your securities to repay the margin loan.
E) will increase both your margin loan and the rate of interest on that loan.

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