Series 14: 8.5.2.1. Cash Accounts

8.5.2.1. Cash Accounts

A cash account is a basic brokerage account often suitable for retail customers. A customer who buys securities in a cash account must deposit 100% of the cost of the securities in the account by the time the transaction settles. As discussed in Chapter 2, the regular way settlement date is T + 2 for most transactions. This means that the customer’s broker must pay for the securities by the settlement date. However, Regulation T allows