SIAA Margin Lending Practice Questions - SIAA Margin Lending Accreditation Exam

Access More Questions

If a margin lender reduces the approved LVR of a stock on their Acceptable Securities List, what is the direct impact on the client's account?

The client's borrowing limit for that stock decreases, which may trigger a margin call if the account is highly geared. The client's outstanding loan balance is automatically reduced by the lender at no cost. The interest rate on the margin loan is permanently reduced to offset the lower LVR. The client is legally forced to sell all their holdings in that stock immediately.

Correct Answer:

The client's borrowing limit for that stock decreases, which may trigger a margin call if the account is highly geared.

Access more questions from this quiz

Continue to SIAA Margin Lending Practice Questions - SIAA Margin Lending Accreditation Exam for more practice questions and the full quiz experience.

Access More Questions