SIE practice questioneasyCash Accounts
In a cash account, an investor must:
- ASign a margin agreement before placing trades
- BHave a minimum of 5 years of investing experience
- CMaintain a minimum balance of $2,000
- DPay for securities in full by the settlement date✓ Correct answer
Explanation
Why D — Pay for securities in full by the settlement date
In a cash account, the investor must pay for the full purchase price of securities by the settlement date. No borrowing is permitted. There is no minimum balance requirement (B) for cash accounts. Margin agreements (C) are only for margin accounts. Experience requirements (D) do not apply to basic cash accounts.
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