Purpose credit is credit for all of the following EXCEPT:
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A. B. C. D.D
The term "crcm" refers to the rules and regulations under the U.S. Securities and Exchange Commission (SEC) relating to credit transactions involving securities.
Under the "crcm" rules, there are certain restrictions on the use of credit when purchasing or carrying margin stock. Margin stock is a security that is bought using borrowed funds, which is also known as buying on margin.
The purpose credit is the reason for which credit is extended to a borrower. In the context of crcm, the purpose credit refers to the use of credit for purchasing or carrying margin stock.
Now, coming to the options provided:
Option A: Immediate purpose of purchasing or carrying margin stock This option implies that the borrower intends to use the credit to immediately purchase or carry margin stock. This is a valid purpose under the crcm rules.
Option B: Incidental purpose of purchasing or carrying margin stock This option implies that the borrower intends to use the credit for a purpose other than purchasing or carrying margin stock, but may incidentally end up purchasing or carrying margin stock as a result of using the credit. This is also a valid purpose under the crcm rules.
Option C: Ultimate purpose of purchasing or carrying margin stock This option refers to the borrower's ultimate intention for purchasing or carrying margin stock, which may not necessarily be the immediate purpose. This is not a relevant consideration under the crcm rules.
Option D: Accidental purpose of purchasing or carrying margin stock This option implies that the borrower did not intend to purchase or carry margin stock but did so accidentally. This is not a valid purpose under the crcm rules.
Therefore, the correct answer is Option D, which is the purpose credit for an accidental purchase or carrying of margin stock.