STC S7 Greenlight 2 Practice Exam

In cash trades, the delivery date occurs on the same day as the trade date. This means that when a cash trade is executed, the transfer of ownership and the exchange of funds happen immediately. Cash trades are typically settled quickly because they involve the immediate exchange of assets. This immediacy is designed to ensure that both parties meet their obligations promptly without the delays that occur in other types of trades, such as those involving securities that may have longer settlement periods.

Other options suggest varying delays in the delivery process, which do not apply to cash trades. For instance, one business day, two business days, or three business days after the trade date pertain to typical settlement periods for transactions involving securities or derivatives rather than cash trades. Such timeframes are standard for standard trades, where the funds or securities must go through certain processing and clearing mechanisms, unlike cash transactions that settle on the same day.