Dictionary

Settlement Day

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Settlement day is the day on which the seller of a stock delivers the assets while the buyer makes payment towards the stocks bought. Usually, for shares, the settlement day is around next 2 business days from trading or execution date, while for government securities or option agreements, it is the next 1 day from trading or execution date. In general, it is the day on which cash settlement or delivery resulting from expired futures or options contracts is conducted.

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