Investors Fear Dreaded Margin Call

by Jim Zarroli, NPR

Every investor dreads margin calls. It's what happens when people borrow heavily against their assets and then see their value plummet, forcing them to sell part of their holdings to pay their lenders. When the market plunged in October, a lot of corporate executives lost chunks of their fortunes to margin calls. But the impact on the economy as a whole is even more devastating.

Broadcast Dates

• Morning Edition, November 7, 2008