If a customer fails to pay for securities purchased in a cash account, the member firm broker will do which of the following?
A)grant an extension for a bona fide reason
B)place the securities temporarily in a general account
C)purchase the securities for the firm's error account
D)liquidate the securities or otherwise cancel the transaction

Question

Quizplus · Accepted Answer

liquidate the securities or otherwise cancel the transaction. Reg T requires the position closed if the customer fails to comply with the rules. An extension may be granted, but not by the member firm. Only an exchange or the FINRA grants extensions for bona fide reasons.

If a Customer Fails to Pay for Securities Purchased in a Cash