Question

Customer Payment (Reg T) for corporate securities in a cash or margin account must be made within:

A) T+1 (one business day after the trade date)
B) T+2 (two business days after the trade date)
C) T+3 (three business days after the trade date)
D) T+4 (four business days after the trade date)

Answer 1

Customer Payment (Reg T) for corporate securities in a cash or margin account must be made within two business days after the trade date (T+2).

Step-by-step explanation:

The correct answer is B) T+2 (two business days after the trade date).

Regulation T, also known as Reg T, is a regulation set by the Federal Reserve Board that governs the amount of credit an investor can use to buy securities. According to Reg T, customer payment for corporate securities in a cash or margin account must be made within two business days after the trade date (T+2).