Also called T+1
Settlement
The day a trade actually completes and ownership transfers. US equities settle one business day after the trade, which is what T+1 means.
Updated 2026-09-05
Settlement is the day a trade actually completes and ownership legally transfers. US equities settle one business day after the trade date, written T+1.
It matters mainly for dividends. To receive a payment you must own the shares on the record date, which means buying before the ex-dividend date date, and the ex-date is set by the settlement cycle rather than by the company.
See also
- Ex-dividend date — The first day a buyer no longer receives the coming dividend. The price typically drops by roughly the dividend that morning, which is arithmetic rather than a sell-off.
- Secondary market — Trading between investors, which is what an exchange is. The company receives nothing when its shares change hands here.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
