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 Government is able to afford a suitable army and a suitable navy. It may maintain them without the slightest danger to the Republic or the cause of free institutions, and fear of additional taxation ought not to change a proper policy in this regard.”
—William Howard Taft (1857–1930)
“With its frame of shaking curls all in disarray,
earrings swinging,
make-up smudged by beads of sweat,
eyes languid at the end of lovemaking,
may the face of the slim girl
who’s riding on top of you
protect you long.
What’s the use
of Vi.s».n»u, iva, Skanda,
and all those other gods?”
—Amaru (c. seventh century A.D.)