Settlement

Question 1

Regular-Way Settlement

Answer 1

Refers to the normal number of days that are required to complete the transaction.

Question 2

Corporate Securities

Answer 2

T+3

Question 3

New Muni Issue

Answer 3

The issuer and its underwriting syndicate will determine the final settlement date for an offering. Settlement in this case refers to the date that the issuer delivers the bonds to the syndicate and the syndicate pays the issuer for the bonds.

New issues normally settle within 30 days after the securities are awarded to the underwriter.

Question 4

When-Issued

Answer 4

This is how muni bonds trade until the settlement date is established.

Question 5

Settlement Date

Answer 5

The date on which the transaction must be completed between broker-dealers representing the buyer and seller.

Question 6

Municipal Securities

Answer 6

T+3

Question 7

In relation to Ex-Dividend Date

Answer 7

Any person who purchases a stock for regular way settlement (T+3) on or after the ex-dividend date will not be entitled to the quarterly cash dividend since he will not own the stock by the record date.