I tried my best to word this question right, so I will give an example of what I am talking about.
On Monday, you buy 100 shares of Company X.
On Thursday, the original purchase of 100 shares settles.
On Friday, you buy 25 more shares of Company X.
Can I sell the original 100 shares on Friday, without violating the "Free Ride" rule? Or, does the Free Ride rule lump all shares of a particular company together, causing me to have to wait until next week to sell the shares?
Definition of "Free Ride": the Free Ride rule only applies to cash accounts; it does not apply to margin accounts. Selling a security before the original purchase for it clears is called a "Free Ride". In the U.S., when using a cash account, it takes 3 days for a purchase of stock to settle. So, if you purchase stock on Monday, you cannot sell it until Thursday. If you sell it before 3 days, the US Federal Reserve Board's Regulation T requires your broker to "freeze" your account for 90 days.