maintenance call

maintenance call definition - business

maintenance call

A call to an investor for additional funds when the market value of securities in the investor's margin account has fallen to the point that the investor's equity (that is, the value of the securities minus the amount owed) does not meet an established minimum. If the investor does not supply the required money or securities, the firm will sell a certain number of securities sufficient to bring the account into conformity. A maintenance call is a type of margin call.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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