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No, Federal Reserve stock is not sold on the open market. The stock is available for a specific purpose. That is to document and compensate a bank's membership in the Federal Reserve system. National banks are REQUIRED BY LAW to become members of the Federal Reserve system. State banks can become members if they meet certain criteria. In order to become members, banks subscribe to shares in one of the Federal Reserve district banks. The dollar amount of the shares they are required to subscribe to is 3% of their paid-in capital. The Board of Governors can demand another 3% of the member banks paid-in capital, but the Federal Reserve district banks have a surplus fund so that doesn't happen. If a member bank reduces it's paid-in capital, it has to surrender any shares it has that is over the amount of 3% of its capital. If a member bank increases its paid-in capital, that bank has to subscribe to additional shares. These shares do not confer any rights of ownership beyond the original par value of the shares. Also, the shares receive a set 6% dividend each year. Member banks cannot sell, trade or even give away their shares.

Part of the Federal Reserve Act states that private individuals and companies cannot own more than $25,000 of Federal Reserve stock. However, I don't think there are any current private owners of Federal Reserve stock and I don't see how anyone could even be granted ownership of that stock.

http://www.law.cornell.edu/uscode/html/uscode12/us...