Certified Regulatory Compliance Manager (CRCM) — Question 109

Which of the following is NOT included in the definition of margin stock?

Answer options

• A. Stock traded on a national securities exchange
• B. Nonmargin stock convertible to margin stock
• C. Debt securities convertible to margin stock
• D. Warrants to purchase margin stock

Correct answer: B

Explanation

The correct answer is B because nonmargin stock does not qualify as margin stock, even if it is convertible. Options A, C, and D all pertain to forms of securities that can be classified as margin stock under specific conditions.