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In a cash account, an investor must pay

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Tellin_Fibs Member Level  Thursday, 12/07/17 02:55:09 AM
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In a cash account, an investor must pay for the purchase of a security before selling it. If an investor buys and sells a security before paying for it, the investor is “freeriding”, which is not permitted under the Federal Reserve Board’s Regulation T and may require the investor’s broker to “freeze” the investor’s cash account for 90 days.

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