customer accounts outline

Cash account

·        Total equity=Market value + cash + money market funds

·        customer can hold Stocks/bond certificates

·        safekeeping, street name, Broker/dealer can hold customer stock/bond certificates

·        firm can NOT hypothecate, lend securities or danger the ownership of stocks/bonds

·        b/d MUST Keep securities separate and safe

A purchase of stock done regular way in a cash account shall be paid for on what day?

·        3 business days after trade

·        regular way-3 business days

·        cash transaction, same day