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

question 311

Multiple Choice

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"?

• A) Any OTC stock
• B) A security issued by an investment company that is licensed under the Small Business Administration Act
• C) A warrant or right to subscribe to, or purchase, a margin stock
• D) An equity security registered, or having unlisted trading privileges, on a national exchange

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Definitions:

Cerebrovascular Accidents

Medical terminology for a stroke, where blood flow to a part of the brain is suddenly interrupted or reduced, causing brain damage.

Persistent Hypoxia

A condition where there is a consistently low level of oxygen in the tissues, which can lead to multiple system failure if not corrected.

Cardiac Defect

An abnormality in the structure of the heart that is present from birth, potentially affecting the walls, valves, arteries, or veins of the heart.

Bacterial Endocarditis

A serious condition involving the inflammation of the inner layers of the heart, often caused by bacterial infection.