Series 7 practice questioneasySettlement and Confirmations 1
Which statement is TRUE regarding settlement and confirmations?
- ARegular-way settlement for equities is T+5
- BRegular-way settlement for most corporate and municipal securities is T+1✓ Correct answer
- CCustomers may pay for cash-account purchases any time within 30 days
- DTrade confirmations may omit the capacity of the broker-dealer
Explanation
Why B — Regular-way settlement for most corporate and municipal securities is T+1
Most equity, corporate bond, and municipal bond trades now settle on T+1. Broker-dealers must also provide confirmations with material trade details.
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