This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: - Regulation T requires customers to pay for securities in a cash account within two business days of the settlement date. - Freeriding is the prohibited practice of buying and then selling a security without ever depositing funds to pay for the initial purchase. - The direct penalty for a freeriding violation is that the customer's account is frozen for a 90-day period. - A "frozen" account means the customer can still trade, but must have sufficient settled cash in the account *before* placing any buy orders. - How to distinguish freeriding from a restricted margin account, which relates to equity levels, not payment failures. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep