A special cash account in which a customer sells a security he had purchased but not paid for, and then either: (1) fails to pay by the fifth business day after the transaction; or (2) withdraws any portion of the proceeds before payment for the purchase. Full payment is required before any further purchase executions for ninety days there after.
A brokerage account that requires cash in advance for a period of 90 days in order to trade triggered by a failure to make timely or complete payments.
bank account whose funds may not be withdrawn until a lien is satisfied or an ownership dispute is resolved.
A disciplinary action taken by the Federal Reserve Board for some violation of Regulation T, an individual investor cannot sell securities until they are paid for in full and certificates delivered.
An account that has been suspended in payment until a court order or legal process makes the account available for withdrawal. The account of a deceased person is frozen, pending disbursement "by a court order" to the new lawful owners of the account.
Occurs when a client fails to pay for securities within the allotted time. Subsequent transactions can only occur if the account has sufficient funds or securities on deposit to complete the transactions. The frozen status or freeze can be removed only after the account complies with existing rules and regulations for an established time frame.
A brokerage account in which the customer may only purchase securities up to the amount of cash in the account and only sell securities if the certificates are held in the account. Generally, an account is frozen for freeriding, which is a violation of Federal Regulation T. Frozen accounts may also be called restricted accounts. See: Freeriding; Regulation T
An account in which the customer has violated Reg. T by not paying within seven business days. A purchase or sale in a frozen account will only be done when sufficient funds or the securities are I the account.
An account in which all purchases must be paid for in cash in advance for a period of 90 days because of failure to make timely or proper payment in the past.
An account in which all transactions have been suspended.
An account to which no purchases can be charged until the full purchase price of the intended order is already on deposit in the account.