Settlement Date
The day on which a securities trade is fully completed -- shares change hands and cash settles. US equities settle T+1 (one business day after trade date) since May 2024; prior to that the standard was T+2. Settlement matters most for short sellers (who must deliver borrowed shares by settlement), for dividend captures (the ex-date math depends on settlement timing), and for tax reporting — though not in the way it is usually assumed: the capital-gains holding-period clock runs from the day after the TRADE date, not from settlement.
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Related terms
Active Management · Active Share · AI Revenue · Anchoring Bias · Cost of Capital · Creation Unit
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