Settlement in case of 'when issued' (WI) trading must be completed on:
A)the date on which the counterparties agree
B)Tuesday
C)Wednesday
D)Thursday

Question

Quizplus · Accepted Answer

Settlement in case of 'when issued' (WI) trading must be completed on Wednesday. This is because WI trades are a type of forward contract where the actual securities are not yet issued, and settlement is typically three business days after the trade date. Since WI trading occurs on Fridays, settlement occurs on the Wednesday following the trade date.

Settlement in Case of 'When Issued' (WI) Trading Must Be