What does an investor do when they receive a margin call?

When an investor receives a margin call, it means that their brokerage requires additional funds or collateral to maintain their margin account due to a decline in the value of their securities. The investor typically has a few options: they can deposit more cash or securities to meet the margin requirement, sell some of their existing holdings to reduce their margin balance, or allow the brokerage to liquidate assets to cover the shortfall. Failing to address the margin call can lead to forced liquidation of positions by the brokerage.