What to Do If You’ve Experienced Investment Losses Due to Margin Calls
The Business Trial Group’s securities attorneys are investigating investment losses relating to margin calls. It is our understanding that brokerage firms may have recently liquidated securities positions to meet margin calls without contacting their clients first. If this happened to you, you may have legal recourse.
A margin account is an account holding securities purchased with both the investor’s money and money borrowed from the brokerage firm. An investor’s equity in the account is equal to the market value of the securities less the amount borrowed.
A margin call typically occurs when the investor’s equity falls below a certain percentage of the account’s total market value. This is called the minimum maintenance margin requirement. Most brokerage firms require a maintenance margin of at least 30%.
If the account falls below the maintenance margin requirement, the brokerage firm will issue a margin call. When this happens, the investor must deposit additional funds into the account or sell some of the securities positions to bring the account up to the minimum maintenance margin.
Some brokerage firms may have recently liquidated securities positions in investor accounts to meet margin calls without contacting the account holders first. If this happened to you, we are here to help. Contact us at 888 343 8073 to speak with an experienced securities attorney at Morgan & Morgan’s Business Trial Group today.
The Business Trial Group at Morgan & Morgan helps investors recover their losses on a contingency basis. We are only paid if we successfully recover money for you. We regularly fight for justice against brokerage firms, investment advisory firms, and banks. We have helped investors recover tens of millions of dollars of investment losses.
The Business Trial Group is part of the largest contingency law firm in the nation, with more than 500 lawyers and 50 offices. Learn more about how the Business Trial Group could assist you during a no-cost, no-obligation case review.