## Answers

The time required between trade date and settlement date differs depending on the trading instrument is called as settlement period. The settlement time is symbolized as T+ the number of days to settlement. The following table will help to understand the settlement days required.

Name of the security | Time require for settlement |

Certificate of deposit | T+ 0 (that is on the same day) |

Mutual fund | T+ 1 (that is on the next day) |

Stocks, Bonds, Municipal securities (As per The Securities and Exchange Commission in September 2017) | T+ 2 (that is on the next two day) |

So as per the Securities and Exchange Commission, the regular way of stock trade affected in cash account –the **Payment is required in full and settlement occurred in 2 business days.**

** So the answer is D (that is II and IV).**

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