Margin call – a double-edged sword


The case of Cape EMS is not the first case in Malaysia where the share price of a company has collapsed due to a margin call.

RISK management today is the pillar of any business to ensure corporates are well-prepared for any unprecedented events; and if it is related to financial matters, it is able to withstand catastrophic losses via mitigating action plans.

In the 2011 Wall Street-themed movie, “Margin Call”, although the storyline was rather fictional, the drama that unfolded over a period of 24 hours was very real.

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