Mid-Cap, Small-Cap Fall Raises Volatility, Margin Call Concerns

Mid-Cap, Small-Cap Fall Raises Volatility, Margin Call Concerns

Mid- and small-cap stocks tumbled on Monday as concerns grew over the recent surge in prices, particularly among public sector companies. Investors are cutting their bets and worry that the decline in share prices could lead to margin calls by brokers. Margin calls would require clients to add more collateral to cover trading losses. If the downward trend continues, it could result in increased volatility in the market.

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