Margin Security

security that may be bought or sold in a margin account. regulation t defines margin securities as (1) any registered security (a listed security or a security having unlisted trading privileges); (2) any OTC margin stock or OTC margin bond, which are defined as any unlisted security that the Federal Reserve Board (FRB) periodically identifies as having the investor interest, marketability, disclosure, and solid financial position of a listed security; (3) any OTC security designated as qualified for trading in the national market system under a plan approved by the Securities and Exchange Commission; (4) any mutual fund or unit investment trust registered under the Investment Company Act of 1940. Other securities that are not exempt securities must be transacted in cash.

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