Under regulation t, an extension request that is granted by finra typically gives a customer how many additional business days to pay for a securities purchacse?

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27-07-2022
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Under regulation t, an extension request that is granted by finra typically gives a customer how many additional business days to pay for a securities purchacse?

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choprayogita110 choprayogita110 · Answer 1 · 2022-08-04T08:45:02+02:00

Specifically, Regulation T gives an investor a maximum of four business days to pay for securities purchased in a cash or margin account.

A "margin account" is a specific kind of brokerage account where your broker-dealer lends you money to buy securities (sometimes referred to as "margin securities") while using the account as security. You might be able to hold a cash account and a margin account simultaneously with some brokerage firms.

A "margin account" is a specific kind of brokerage account where the broker-dealer lends the investor money to buy securities while using the account as collateral. While margin gives investors more purchasing power, it also exposes them to the possibility of bigger losses.

Learn more about margin account here

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