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 three business days of the trade date✓ Correct answer
Explanation
Why D — Within three business days of the trade date
Regulation T requires full cash payment within one payment period. The payment period is the standard U.S. settlement cycle plus two business days, so after the move to T+1 the cash-account payment deadline is T+3.
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