If stock prices dropped, brokers could force investors to repay their loans if the investors were...

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asked Aug 25, 2017 127k views

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Scupit · Answer 1 · 2017-09-01T14:23:42+0000

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.

If stock prices dropped, brokers could force investors to repay their loans if the investors were...

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