Two factors come into play: First, good quality applicators do a better job of applying paint, and more uniformly, than poor applicators. As a result, they achieve better hide, or coverage. Second, painting technique is a factor that could contribute to overspreading the product.
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.
In New York, a liquidating agreement is enforceable if it includes: (1) an imposition of liability on the GC for its subs damages, (2) a liquidation of that liability to the amount recovered by the GC from the at-fault party and (3) a provision for pass through of the recovery to the sub.