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 required payment date. No borrowing is permitted. Cash accounts do not require a margin agreement, a specific investing-experience minimum, or a margin-style minimum balance.
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