Account Types
In a cash account, securities must be fully paid for by:
Cash account = full payment by settlement. No credit extended.
Complete Analysis & Legal Rationale
In a cash account, customers must pay for securities in full by the settlement date. For most securities, settlement occurs on T+1 (one business day after trade date).
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:
Payment is not required on trade date; customers have until settlement.
T+1 is correct for settlement, but answer C more accurately describes the requirement.
Matches the verified teaching point in the explanation.
30 days exceeds standard settlement; this could result in a Regulation T extension or account freeze.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.