Trading, Accounts & Prohibited ActsQuestion 205 of 398
An investor buys 100 shares of common stock regular way on a Thursday, with no intervening holidays. On what day does the trade settle?
a.Thursday (same day)
b.Saturday
c.Friday
d.The following Monday
Explanation
Regular-way equity settlement is T+1, so a Thursday trade settles on Friday, the next business day. Weekends and holidays are excluded when counting settlement days.
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