Answer:
The correct answer is letter "D": may sell some of your securities to repay the margin loan.
Explanation:
A Margin Call is issued when the equity in a margin account falls below a certain level. In the U.S. this level is set by the Federal Reserve (Fed) Board "Regulation T". Many brokers have their margin requirements known as "house requirements" usually with maintenance levels of 30 to 40%.
When a margin account falls below the margin limit and the trader ignores this, the broker can sell some of the securities of the trader to cover the margin losses.
A. <span>It's safer just to keep it at home in a secure place.
This is a reason to NOT invest. The others are all reasons TO invest. </span>
Answer:
Conditional Fee Estate
Explanation:
Based on the information provided within the question the term being described in the question is called a Conditional Fee Estate. This is (like mentioned in the question) similar to a fee simple except the property must eventually be passed on to the heirs. Which is why it is named as Conditional, because failure to do so will eventually cause the termination of the interest.
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