SIE practice questionhardSettlement and Account Types
Settlement in a cash account requires:
- ACustomer pays only initial margin
- BBroker advances payment until next month
- CCustomer payment in full by settlement date✓ Correct answer
- DFunds are transferred after 30 days
Explanation
Why C — Customer payment in full by settlement date
Customers must pay for all purchases in full on or before settlement date in a cash account. Margin payments and long delays are not allowed.
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