Final answer:
In most cases, it is not permissible for a representative to make a loan to a client to meet a margin call. Margin lending involves borrowing funds from a brokerage firm, but the loan must be repaid in cash, not by receiving a loan from the brokerage firm.
Step-by-step explanation:
In most cases, it is not permissible for a representative to make a loan to a client to meet a margin call. Margin lending is a regulated practice that involves borrowing funds from a brokerage firm to buy securities. However, margin loans must generally be repaid in cash, not by receiving a loan from the brokerage firm itself.
When a client is faced with a margin call, they are required to deposit additional funds into their account to meet the minimum margin requirement. This is typically done using their own available cash or other liquid assets.
It is important to note that different regulations may apply in different jurisdictions, so it is always best to consult the specific rules and guidelines of the relevant regulatory authorities.