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The "settlement period" is the period of time between when a payment to you is authorised and when you receive the money in your business bank account. It can be anywhere from 24 hours to 8 weeks, but three working days is typical for established businesses with their own merchant account.

A transaction date represents the date on which a transaction occurs whereas the settlement date is the day on which the transaction is finalised, that is, the ownership of the security is transferred to the buyer.

A settlement transaction on a statement, which is hardly seen, is when a bank takes the funds and makes the adjustment immediately. There is no waiting for transactions that are settled. The funds are taken from the first bank and immediately put into the second bank's account.

Settlement involves exchanging funds between the two banks, while clearing can end without any interbank money movement. In the clearing process, funds move between the recipient's or sender's bank account and their bank's reserves.

The rationale for the delayed settlement is to give time for the seller to get documents to the settlement and for the purchaser to clear the funds required for settlement. T+2 is the standard settlement period for normal trades on a stock exchange, and any other conditions need to be handled on an "off-market" basis.

It refers to the obligation in the brokerage business to settle securities trades by the third day following the trade date. The settlement occurs when the seller receives the sales price (the broker's commission) and the buyer receives the shares.

A Settlement Cycle refers to a calendar ing to which all purchase and sale transactions done on T Day are settled on a T+1 basis. T = Trading Day and +1 means 1 consecutive working days after T (excluding all holidays).

When does settlement occur? For most stock trades, settlement occurs two business days after the day the order executes, or T+2 (trade date plus two days). For example, if you were to execute an order on Monday, it would typically settle on Wednesday.