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maintenance call

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Financial Dictionary

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.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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