Requirements for the list of marginable OTC stocks and the list of foreign margin stocks.

CFR · 2024-01-01 · US · Title 12

(a) (1) Four or more dealers stand willing to, and do in fact, make a market in such stock and regularly submit bona fide bids and offers to an automated quotations system for their own accounts; (2) The minimum average bid price of such stock, as determined by the Board, is at least $5 per share; (3) The stock is registered under section 12 of the Act, is issued by an insurance company subject to section 12(g)(2)(G) of the Act, is issued by a closed-end investment management company subject to registration pursuant to section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8), is an American Depository Receipt (ADR) of a foreign issuer whose securities are registered under section 12 of the Act, or is a stock of an issuer required to file reports under section 15(d) of the Act; (4) Daily quotations for both bid and asked prices for the stock are continously available to the general public; (5) The stock has been publicly traded for at least six months; (6) The issuer has at least $4 million of capital, surplus, and undivided profits; (7) There are 400,000 or more shares of such stock outstanding in addition to shares held beneficially by officers, directors or beneficial owners of more than 10 percent of the stock; (8) There are 1,200 or more holders of record, as defined in SEC Rule 12g5-1 (17 CFR 240.12g5-1), of the stock who are not officers, directors or beneficial owners of 10 percent or more of the stock, or the average daily trading volume of such stock as dete

official document · source cfr-2024 · id 12:§ 220.11