Liquidation and Free Riding
A liquidation violation occurs when the client sells a security to satisfy a cash obligation for the purchase of a different security after trade date. This is a violation because the sale of the second security will not be settled by the time the first purchase settles. A liquidation violation carries the same penalties as a good faith violation.
Read more about this topic: Free Riding
Famous quotes containing the words free and/or riding:
“The modern picture of The Artist began to form: The poor, but free spirit, plebeian but aspiring only to be classless, to cut himself forever free from the bonds of the greedy bourgeoisie, to be whatever the fat burghers feared most, to cross the line wherever they drew it, to look at the world in a way they couldn’t see, to be high, live low, stay young forever—in short, to be the bohemian.”
—Tom Wolfe (b. 1931)
“Strong Men, riding horses. In the West
On a range five hundred files. A Thousand. Reaching
From dawn to sunset.”
—Gwendolyn Brooks (b. 1917)