I was wondering if anybody knew what this meant. I recently sold some stocks and then bought some today but I don't know what this notice means:

This order to purchase securities if accepted will be paid for by the proceeds of the sale of securities in your account which settle on or before the payment for the purchase is due. If you enter an order to sell these securities before they are fully paid for, your account may be subject to a 90 dayrestriction under federal securities regulation.

Thanks for the help!

You're purchasing the stocks with unsettled funds. They essential treat it as if you are trading on margin.

If you're not set up for a margin account, it's bad news. Don't do it.

US equity settlement period is T+3, and you can't sell the securities you are buying today for at least 72 hours to allow all trades to settle.

[This message has been edited by jh0400 (edited 6/14/2012 2:34p).]

Not a big deal, just don't do it again

Go get a margin account and you dont have to worry about it

Agree with what has already been said.

It takes ~72 (business) hours after you sell for your funds "settle" - meaning the money is in your account and can be used unrestricted. If you turn around and use the proceeds of your sale to purchase securities before your money has settled, you will get this notice. Now, if you try and sell your newly acquired securites before those funds have settled, this is a "free riding" violation (more info on that) - if you do this they will require you to deposit enough funds to fully cover the purchase you made.

[This message has been edited by asf-07 (edited 6/15/2012 2:29p).]

You're in danger of committing a good faith violation.

The 90 day restriction is more in line with pattern day trading, i.e. if you buy stock A in the morning and sell it in the afternoon on Monday, then buy stock B and sell it on Tuesday, buy and sell stock C on Thursday, and buy and sell stock D on Friday, that is four trades in 5 days. They will peg you for a pattern day trader, and restrict your ability to trade for 90 days, unless you have $25k in a margin account.