Final answer:
A brokerage firm must deliver a customer confirmation by the settlement date, which is usually two business days after the trade date for most stock trades. Different securities may have different settlement periods. It is important for the investor to review this confirmation for transaction accuracy.
Step-by-step explanation:
Under the rules mandated by the U.S. Securities and Exchange Commission (SEC), a brokerage firm must issue a trade confirmation, also known as a customer confirmation, no later than the completion of the transaction, usually referred to as the settlement date. For most stock trades, this would be the trade date plus two business days (T+2). However, different types of securities may have different settlement periods. For instance, government securities, stock options, and municipal bonds typically settle the next business day after the trade date (T+1).
It's important for investors to review these confirmations promptly, as they provide crucial details about the transaction including the date, time, price, number of shares bought or sold, and any fees or commissions associated with the trade. This allows for the timely rectification of any discrepancies.