If the value of the stocks falls to $8,000, the investor's equity will be $3,000 ($8,000 - $5,000). Since the equity is below the minimum maintenance margin of $2,500, the brokerage firm will issue a margin call, requiring the investor to deposit additional funds to bring the equity back up to $2,500.
Understanding the Margin Call: A Comprehensive Guide to Risk and Leverage margin call with english subtitles
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