1.General: Deadline by which an executed order must be consummated: the day on which the seller must deliver what was sold and purchaser must pay for what was bought.
2.Financial markets: Date on or before which funds and instruments must exchange hands between a buyer and a seller; as opposed to the transaction date (trading date) on which an order is executed. Settlement date follows the trading date by a fixed or specified number of business days; usually three days for stocks (shares) and bonds, and one (next) business day for government securities and listed options. See also maturity date and settlement option. Also called settlement day.
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