127k views
5 votes
If stock prices dropped, brokers could force investors to repay their loans if the investors were...

User Mush
by
8.8k points

1 Answer

4 votes
If stock prices dropped, brokers could force investors to repay their loans if the investors' stock fell bellow a certain point--which was called a "margin call". This was meant to protect the initial investment. 
User Scupit
by
7.8k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.