In evaluating the coverage of a bank's Regulation U compliance for loans to purchase or carry margin stocks, which of the following securities is NOT covered in the regulatory definition of "margin stock"?

Question

Quizplus · Accepted Answer

The regulatory definition of "margin stock" includes equity securities registered, or having unlisted trading privileges, on a national exchange, any OTC stock, and warrants or rights to subscribe to, or purchase, a margin stock. However, securities issued by an investment company that is licensed under the Small Business Administration Act are exempt from this definition and are not considered margin stock. Therefore, choice B is not covered in the regulatory definition of "margin stock."

In Evaluating the Coverage of a Bank's Regulation U Compliance