What a Difference a Day Makes for New SEC Rule

Tuesday was a milestone date for income investors but passed with little fanfare. On March 22, the Securities and Exchange Commission mandated that brokerages must switch to settling trades two business days after the event instead of the previous three-day standard, and Tuesday was the deadline for adherence to the new rule. The switch to "T+2" from "T+3" -- the industry standard since the 1990s -- changes the rules for investing to capture dividends and interest payments, and also affords investors with non-marginable accounts a shorter trip to the "where is my cash" penalty box. 

So the move to T+2 is a big deal, and I am surprised it has not garnered more attention in the financial media. Anyone who has ever taken the mind-numbingly boring Series 7 exam remembers the seemingly stupid questions:...435 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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