SIE Understanding Trading, Customer Accounts and Prohibited Activities Practice Question 45

Question: 45

Which of the following statements correctly defines trade settlement?

A. Trade settlement refers to the time in business days between the date the trade is agreed to, until the seller's broker-dealer receives payment and the buyer's broker-dealer receives ownership.

B. Trade settlement refers to the time in business days during which a security is held.

C. Trade settlement refers to the time in calendar days between the declaration date for stock dividends and the ex-dividend date.

D. Trade settlement refers to the time in calendar days between the first trade for which an investor places a market order and the confirmation of the order's execution is reported to the investor's broker-dealer.

SIE Understanding Trading, Customer Accounts and Prohibited Activities Practice Question 45

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