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.
However, if a brokerâdealer is executing a. block trade on behalf of a third party (unrelated to the. issuer and not an affiliate or control person), depending. on the facts and circumstances, the transaction will. more likely than not be deemed to constitute a. distribution.