Federal Reserve Adds 157 Stocks to List Of OTC Securities Under Margin Rules
WASHINGTON -- The Federal Reserve Board added 157 stocks to the list of over-the-counter securities falling under the board's margin, or credit, rules.</br></br>The stocks comprise 35 securities that meet the board's criteria and 122 that automatically are eligible because they qualified for trading on the National Market System of the National Association of Securities Dealers Automated Quotation System.</br></br>The Fed also removed 43 stocks from the list for failing to meet its requirements. And 44 have been removed because they have been listed on a national securities exchange or have been acquired by another company, or for similar reasons.</br></br>The Fed's new list of 2,476 stocks will take effect Aug. 13. The Fed revises its over-the-counter list three times a year.</br></br>Under the Fed's margin requirements, anyone buying a stock on credit must make a cash down payment, currently at least 50% of the stock's purchase price. The same rule applies to stocks listed on national exchanges.