How soon can I sell a stock?

Question

I'm confused. I purchase a 1,000 shares of stock XZY at 10:00am on Thursday via online broker. How long does it take this transaction to clear and how soon can I re-sell the stock? Let's say I am using TD-Ameritrade for instance.

Answer 1

After you buy a stock you can sell it immediately if you wish.  If you are on-line, you should get a confirmation as soon as it the transaction clears.  It is then available to be sold.   It should also show up in your stocks owned portfolio.

You can't sell the stock until the purchase is processed.  So you don't actually need to wait for email confirmation.  If you try to sell a stock you don't own, you should get a message telling you that you can't do that.  I know Scottrade works that way, and would expect all brokers to have a similar safeguard in place.   (You can short sell stocks you don't own.)

However, it takes T+3 days for trades to settle. (buy and sell) If you are trading in a cash account you should be very careful about rapid trading.  Otherwise you could use unsettled funds contrary to SEC regulations.    You can buy with unsettled funds.  But you can not sell that purchase until the first sale settles.

Answer 2

Well the transaction can either become effective immediately or within 24 hours depends on your brokerage. Now regarding the selling of a stock you can sell it whenever you want but, stocks are a long term investment you should not sell stocks to quickly let them mature and hold on to them for a wile. Determine how much profit you desire to make and achieve it then  move on to the next objective. Stocks should  turnednot become a gamble. The point is to buy cheap and sell a expensive. Choose industries that are reputable and invest in them when they aren't doing to well when they go back up you sell. Lets say that City bank crashes its a big and powerful bank that in time will be up and going again, now you buy cheap when people don't have to much confidence and then you give it a year maybe two then when they  go back up you sell.  If you buy $5.57 one thousand shares then they go up to $11.50 in a year or two you just  turned $5000 into $11,500.

The point is to not be hast and hold on to the stocks wile they  value. Dont sell short.

Answer 3

You can sell it immediately if that is what you want...Perhaps there was a delay in AT's processing. I would call them for a better answer

Answer 4

I use Scottrade, and I always wait until I get a statement that shows the settlement date.  For example, I purchased 50 shares of XYZ on 7/8 and I get a notice via email on 7/11 that the transaction has settled.  If I decided to sell on 7/11, I probably wouldn't get a notice until 7/15.  My account value would be whatever the sale price was, but my funds available for trading would be $0 until it settles.  I don't know how it works if you buy/sell before settlement date.

Answer 5

You should be able to see the transaction online in your account.   Unless you are buying a foreign stock, or something on pink or grey sheets, it ought to promptly go through, but again, you should be able to log into your account and immediately determine the status of the purchase.  Once purchased, you can resell it immediately, if you so choose.  Again, if you keep your account open and hit the enter button, or the arrows button on the toolbar at top of the screen, the screen should update.

Usual market hours apply, so while you may be able to sell after hours on Ameritrade, it depends on the time....you may not see the completed transaction until the following morning, of you entered it at 5 pm.  If you cannot see the transaction in your account, then call Ameritrade and ask someone for assistance.  That is what you pay they for. .

Answer 6

All equity transaction done in the United States clear on the third business day following the day of trade.

It doesn't matter what brokerage firm you use since all brokerage firms are subject to the same rules and regulations nor does it matter whether you entered the order on-line or by telephone.

HOWEVER, you can sell the stock, within seconds of the purchase, BUT all purchases must be paid in full prior to the sale.  If payment is not made, the account is restricted for 90 days or until payment is made, and you can not use the proceeds of the sale for payment of the purchase.

All broker/dealers record transactions to their books as of the settlement date of the transaction.  So if you bought and sold on the same day, the buy and the sell transaction would be posted to your account on the settlement date  (this does not mean you won't be able to see the "pending" transaction(s) in your account