Which of the following is NOT included in the definition of margin stock?
Which of the following is NOT included in the definition of margin stock?
Debt securities convertible to margin stock are not included in the definition of margin stock. Margin stock typically refers specifically to equity securities that are traded on a national securities exchange, over-the-counter margin stock, securities convertible into margin stock, or warrants or rights for margin stock. Debt securities, even if convertible, do not fall within the standard definition of margin stock.
B. Nonmargin stock convertible to margin stock is not automatically considered margin stock until it is actually converted into margin stock. While the potential for conversion may impact its attractiveness to investors, it does not confer the status of margin stock with all associated regulatory implications until such conversion takes place. Thus, nonmargin stock convertible to margin stock does not fall within the standard definition of margin stock until the conversion is executed.