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Finance Dictionary and Glossary of Investment Terms
The date on which payment is made to settle a trade. For stocks traded on U.S. exchanges, settlement is currently three business days after the trade. For mutual funds, settlement usually occurs in the U.S. the day following the trade. In some regional markets, foreign shares may require months to settle.
The date by which an executed securities transaction must be settled, by paying for a purchase or by delivering a sold asset; usually three business days after the trade was executed (T+3); or one day for listed options and government securities.
1. The date by which an executed security trade must be settled. That is, the date by which a buyer must pay for the securities delivered by the seller. 2. The payment date of benefits from a life insurance policy.