FINRA Series 63 – Uniform Securities Agent State Law — Question 7

"T + 3" refers to

Answer options

• A. the form, also known as a "trade ticket," that is filled out when an order is entered into the market.
• B. the form that is filled out and sent to the client confirming that the trade has been executed.
• C. the fact that the settlement date will be three business days after the trade date, which is the "regular way settlement" for transactions involving stocks and corporate and municipal bonds.
• D. a procedure to minimize the potential for money laundering.

Correct answer: C

Explanation

The correct answer is C, as it accurately describes the standard timeline for settling trades in the securities market. Options A and B refer to documentation processes related to trading but do not address the settlement timeline. Option D discusses anti-money laundering procedures, which is unrelated to trade settlement dates.