Practice Quiz

FINRA Series 63 (NASAA)

Category - Series 63

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The settlement date refers to
  1. the date the order to purchase or sell the security is sent to the market.
  2. the date the buyer must pay for the securities purchased.
  3. the date the order to purchase or sell a security is actually executed. This may differ from the date that the order is sent to the market in the cases of limit or stop orders.
  4. the latest date on which broker-dealers can file their quarterly financial statements with the Administrator of the state.
Explanation
Answer: B -The settlement date is the date that the buyer must pay for the securities purchased. For stocks and bonds other than U.S. Treasury securities, this date is the third business day after the trade. For U.S. Treasuries and options that sell on exchanges, the settlement date is the next business day.
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