SIE practice questionmediumCash vs. Margin Account – Securities Delivery
A customer wishes to purchase shares in a cash account. When must payment be made according to Regulation T?
- AWithin two business days of the trade date (T+2)
- BBy the end of the month
- COn the trade date
- DWithin four business days of the trade date✓ Correct answer
Explanation
Why D — Within four business days of the trade date
Under Regulation T, payment for securities purchased in a cash account must be received within four business days of the trade date (T+4). T+2 is the typical settlement date for most securities, but Regulation T allows up to T+4 for payment.
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