regular-way contract

regular-way contract

A security transaction in which delivery of the certificate by the selling broker and delivery of cash by the buying broker are to occur three business days after the trade date. A regular-way contract is the usual method for handling stock and corporate and municipal bond transactions. Government securities and options settle one business day following the trade date. Compare cash contract. See also seller's option contract.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.