Financial Industry Regulatory Authority (FINRA) Practice Exam 2026 - Free FINRA Practice Questions and Study Guide

The correct answer is that the latest payment for purchased securities in a cash account is due by T + 4 business days according to Regulation T. Regulation T requires that customers must pay for their purchases of securities within a specified time frame, which is set at four business days after the trade date. This rule is in place to ensure that transactions in cash accounts are settled in a timely manner, allowing for an orderly market and reducing the risk of payment defaults.

While other options might appear logical considering trade and settlement practices, the specific regulation outlines that T + 4 is the definitive requirement for cash accounts. This timeframe accounts for the complexities of the market, such as potential processing delays and the need for clearinghouses to facilitate the settlements. Knowing the correct payment deadline is crucial for participants in the financial industry since failing to submit payment on time can lead to penalties, restrictions on trading, or forced liquidation of the purchased securities.