Margin Calls
This type of call was issued on the client's account
Maintenance / House Call
The client asks, “Do I still have money to trade with?” This is the general account information the representative must review.
Client's available-to-pay or buying-power
"This stock has a 70% special margin requirement"
Factual
The client says, “I see trades that I did not place.” What should the representative do first?
Acknowledge the concern and review what happened before providing proper information that Schwab sold them out of the stock
What caused the call to be issued?
Insufficient funds
True or false: The account’s total market value always equals the amount the client can use for a new purchase.
False
“You should buy the fully marginable stock.”
Advice
Which response is better: “Those were just liquidations,” or “I understand why unexpected trades would be concerning. Let’s review what happened”?
Second response
What action was taken in the account?
Liquidation of positions
After a liquidation, this information should be refreshed or reviewed before quoting what the client can trade with
Current balances and buying power
“The non-marginable stock requires 100% of the purchase amount.”
Factual
The client asks several questions at once. What should be prioritized before discussing a new trade?
Understand the clients concerns first and then tackle the problems in order
True or False: an unfamiliar trade in the account automatically means an unauthorized person placed a trade.
False
The client wants to trade before the market closes. Name a factor, besides the displayed balance, that could affect the answer.
Security's margin requirement & recent account orders/activity
What is the key difference between explaining a security and recommending one?
Objective information vs directional advice
Put these tasks in a reasonable order: recommend a stock, review the unexpected trades, address security concerns, confirm current buying power.
Review unexpected trades and then address security concerns, confirm current buying power, and do NOT recommend a stock!