Settlement Date

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DEFINITION of 'Settlement Date'

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.

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BREAKING DOWN 'Settlement Date'

The settlement date for stocks and bonds is usually three business days after the trade was executed. For government securities and options, the settlement date is usually the next business day.

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