Andrew Buys 1,000 Shares of AT&T Stock with a Margin

Multiple Choice

Andrew buys 1,000 shares of AT&T stock with a margin requirement of 50 percent. At the time of the original transaction, AT&T stock was $24 per share. When AT&T stock then falls to about $12 per share, Andrew will likely receive a(n) ____ from the brokerage firm.

A) margin cancellation
B) short sell
C) margin call
D) increased margin requirement
E) speculative recall