When stocks are sold or bought, the money exchange must take place in how many days?

Question

Thanks in advanced!

Answer 1

I believe it is either 3 days or 5 but I do not have a brokerage license, only series 6 and 63, so can't be too sure.

Answer 2

the normal settlement period is 3 days and works on a rolling settlement, so it's called T(Trade)+3 Some instruments are traded for cash T+1 like options and maybe govt. bonds. The settlement can usually be extended to T+5.10,15 maybe 20. This will usually cost extra. A rolling settlement means the settlement is not on a fixed day, like it used to be. In the Uk you can match the purchasae settlement with the selling settlement. So if you buy T+10 you could sell one day later on T+9, then T+8 etc. until you get to T+1. I don't know if this is the same in the States.

Answer 3

With the exception of trades done for cash, stock trades settle on the settlement date of the trade

Settlement date is the third business day following the trade date.

Broker/dealers maintain their books and records on a settlement date bases, meaning all trades and their settlement are done on settlement date.

Answer 4

Normal settlement time is trade date, plus 3 business days.

So if trade is placed on Monday, would settle on Thursday, baring any holidays.

Answer 5

Stock trades settle in 3 business days.