settlement date

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Settlement date

The date on which payment is made to settle a trade. For stocks traded on US exchanges, settlement is currently three business days after the trade. For mutual funds, settlement usually occurs in the US the day following the trade. In some regional markets, foreign shares may require months to settle.

Settlement Date

1. The date upon which the buyer of a security must pay the seller. The settlement date depends upon the type of security traded; for example, stocks usually have a settlement date three days after the trade date. On the other hand, government bonds must be settled on the next trading day. It is important to note that when calculating the capital gains or losses, one uses the trade date and not the settlement date.

2. In life insurance, the day the benefit is paid. This usually follows the death of the beneficiary, unless he/she cashes in the policy.

settlement date

The date on which either cash (for a buyer) or a security (for a seller) must be in the hands of the broker in order to satisfy the conditions of a security transaction. Compare trade date. See also delayed settlement.

Settlement date.

The settlement date is the date by which a securities transaction must be finalized.

By that date, the buyer must pay for the securities purchased in the transaction, and the seller must deliver those securities.

For stocks, the settlement date is three business days after the trade date, or what's referred to as T+3. For options and government securities, the settlement date is one day, or T+1, after the trade date.

In figuring long- and short-term capital gains on your tax return, you use the trade date -- the date you buy or sell a security -- rather than the settlement date as the date of record.

settlement date

Closing date.

References in periodicals archive ?
This change to settlement dates will not be reflected in the revised
Prospectus or Supplements, as these settlement dates for cash creations
the Effective Date, to change the settlement date for in-kind
Freddie Mac also is announcing a change in the announcement, pricing, and settlement dates for our April Reference Notes and the pricing and settlement dates for our July Reference Notes.
Pursuant to the forward sale agreements, the forward purchasers will pay the Company an aggregate of approximately $75 million in approximately nine months and an aggregate of approximately $75 million in approximately twelve months, subject to the Company's right to receive a portion of such payment prior to the settlement dates.
The Income and Growth PRIDES' ultimate return to investors will depend upon the value of the TXU common stock at the contract settlement dates.
Each unit of Income PRIDES will consist of a contract to purchase TXU common shares at future settlement dates (half in August 2001 and half in August 2002) and an interest in like amounts of series D senior notes of TXU maturing in 2003 and series E senior notes maturing in 2004.
Foster Wheeler expects to have two settlement dates for the delivery of the common shares.
With the impending implementation of the Bond Market Association's (BMA) Callable Pricing model, Callable Benchmark Notes settlement dates previously announced with the 2003 Benchmark Securities calendar are suspended.
The senior notes will be pledged to secure the unitholders' contractual obligation to purchase shares of TXU at the contract settlement dates.
For all of the stated maturities included in the calendar, Fannie Mae has scheduled announcement, pricing, and settlement dates, providing unprecedented definition and organization with respect to its issuance intentions in noncallable Benchmark securities.
The detailed Fannie Mae Year 2000 Benchmark Notes and Bonds Calendar, with scheduled announcement, pricing, and settlement dates, is attached as Exhibit A.