Account Types
A customer commits a freeriding violation in their cash account. What is the mandatory consequence under Regulation T?
Freeriding is a federal violation under Regulation T that results in a mandatory 90-day account freeze after even a single violation. During this period, the customer can only trade if they have fully settled cash in the
Complete Analysis & Legal Rationale
Freeriding is a federal violation under Regulation T that results in a mandatory 90-day account freeze after even a single violation. During this period, the customer can only trade if they have fully settled cash in the account before placing orders. Unlike good faith violations, there are no warnings.
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:
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Primary source referenced in the explanation (Regulation T). Verify before launch.