Please explain – what is a margin call?

If you have a superfund, then you already have an indirect involvement with the share market. But have you thought about taking the next step? While it’s expensive, you can take out a loan to help cover the cost purchasing the shares.

But when the share prices fall, you may be involved in a margin call.

Story features: Dave Michayluk, Professor of Finance at UTS Business School.

Image: ‘Numbers And Finance’ by Ken Teegardin on Flickr