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Reg U Margin Stock & The Meaning of "Carry"

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Question: 
My question involves Reg U - Margin Stock. The reg talks in terms of the purpose of the loan being to "buy or CARRY margin stock." What does the reg mean by "CARRY"?
Answer: 

To "carry" margin stock is to keep it in one's portfolio. Think of a retailer saying "we carry that item." It means it's in inventory. The expression is probably derived from the concept of a dealer or broker who carries an inventory of investments specifically for resale.

First published on BankersOnline.com 1/16/06

First published on 01/16/2006

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