Trading, Accounts & Prohibited ActsQuestion 191 of 398
An investor needs the proceeds from a stock sale available the same day the trade is executed. Which settlement type should be specified?
a.Cash settlement
b.Regular-way settlement
c.When-issued settlement
d.Seller's option settlement
Explanation
A cash (same-day) settlement requires delivery of securities and payment on the trade date itself, making the funds available immediately. Regular-way settlement for equities is T+1, one business day after the trade.
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