Settling Securities Transactions, T+2

{
  "id": "MLC-T-FIN-000348",
  "term": "Settling Securities Transactions, T+2",
  "field": "Finance and investing",
  "definition": "Investors must complete or \"settle\" their security transactions within two business days. This settlement cycle is known as \"T+2,\" shorthand for \"trade date plus two days.\"\n\nT+2 means that when you buy a security, your payment must be received by your brokerage firm no later than two business days after the trade is executed. When you sell a security, you must deliver to your brokerage firm your securities certificate no later than two business days after the sale.\n\nThe two-day settlement date applies to most security transactions, including stocks, bonds, municipal securities, mutual funds traded through a brokerage firm, and limited partnerships that trade on an exchange. Government securities and stock options settle on the next business day following the trade.",
  "references": [
    "SEC Investor.gov Glossary"
  ],
  "url": "https://mlchart.com/terminology/finance/settling-securities-transactions-t-plus-2/"
}