Which of the following statements is true?
A)In equity markets, delivery and cash settlement normally occur two business days after the spot agreement.
B)In equity markets, delivery and cash settlement normally occur three business days after the spot agreement.
C)In equity markets, delivery and cash settlement normally occur four business days after the spot agreement.
D)In equity markets, delivery and cash settlement normally occur five business days after the spot agreement.

Question

Quizplus · Accepted Answer

In equity markets, delivery and cash settlement normally occur three business days after the spot agreement. This is known as T+3 settlement cycle, where T represents the trade date.

Which of the Following Statements Is True