Settlement
According to Regulation T, by when must a customer in a cash account pay for a securities purchase?
Reg T payment: S+2 (settlement plus 2 days). With T+1 settlement, payment due by T+3.
Complete Analysis & Legal Rationale
Regulation T requires customer payment within 2 business days after settlement (S+2). With T+1 settlement, this means payment is due by T+3. In a cash account, the customer must pay 100% of the purchase price.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Fails to satisfy established regulatory or procedural criteria.
Fails to satisfy established regulatory or procedural criteria.
Accurately reflects standard governing principles and verified criteria.
Fails to satisfy established regulatory or procedural criteria.
Official Standard: Primary source referenced in the authored explanation (Regulation T).