Series 7 Exam Question 227: Answer and Explanation

Question: 227

The settlement date for municipal bonds is

• A. T+1
• B. T+2
• C. T+3
• D. Up to 5 business days at the purchaser's discretion

Correct Answer: B

Explanation:

B. The settlement date for stocks, corporate bonds, and municipal bonds is T+2 (2 business days after the trade date). The settlement date is the day that the issuer updates its records and certificates are delivered to the purchaser's brokerage firm.