Settlement Date
 |
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. |
|
Investopedia explains '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. |
Related Definitions
Articles Of Interest
-
Understanding Forex Rollover Credits And Debits
Forex trades are subject to receiving interest or being debited interest if positions are held overnight. -
The Nitty-Gritty Of Executing A Trade
Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out! -
Do I own a stock as of the trade date or the settlement date?
When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which is simply the date that the order is executed in the market. The second ... -
What does rollover mean in the context of the forex market?
In the forex (FX) market, rollover is the process of extending the settlement date of an open position. In most currency trades, a trader is required to take delivery of the currency two days ... -
How is rollover interest calculated?
In the forex market, all trades must be settled in two business days. Traders who want to extend their positions without having to settle them must close their positions before 5pm Eastern Standard ... -
How can a futures trader exit a position prior to expiration?
A futures contract is an agreement to buy or sell a commodity at a pre-determined price and quantity at a future date in time. While this is similar to an option, where the holder has the right ... -
Making It Big On Wall Street
Read about some of the most glamorous Wall Street jobs and what it takes to land one. -
Quants: The Rocket Scientists Of Wall Street
Blend math, finance and computer skills to command a high - and well deserved - salary. -
Build A Baby Berkshire
Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks. -
Cash: A Call Option With No Expiration Date
Cash is generally regarded as a drag on investment returns, but sometimes it may be preferable to hold a substantial cash amount instead of investing it in other assets. This is because having ...
