SIE Exam Question 129: Answer and Explanation

Question: 129

A stock trade executed on Friday, January 2, will settle on what date?

• A. Monday, January 5
• B. Tuesday, January 6
• C. Wednesday, January 7
• D. Thursday, January 8

Correct Answer: B

Explanation:

Stock trades ordinarily settle on a T+2 schedule, meaning that the settlement date is two business days following the trade date (T). Therefore, a stock trade executed on Friday, January 2, would settle on Tuesday, January 6, since weekends do not count as business days.