Settlement date

The day the money and the shares actually change hands

In detail

The settlement date is when the cash and the shares from a trade actually move. How many business days after the trade that happens is set by each market. To qualify for a dividend you must be on the register on the record date, so you count these days backwards when buying. It is also why sale proceeds cannot be withdrawn immediately.

Example

In a market that settles 2 business days after the trade, a Wednesday trade settles on Friday.

Differences by country

Japan — Japanese shares settle two business days after the trade.

South Korea — Korean shares settle two business days after the trade (as of 2026).

Related terms

Record date Execution Dividend

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For learning, not investment advice. Decisions are your own.