| Settlement is the process by which investors pay for shares they have bought and receive payment for shares they have sold. In some markets, this process has been done by means of an account period, normally ten working days. All the transactions during that period were balanced against each other to produce a single figure that was either paid to the investor or by him. It is more common to have rolling settlement, meaning that each transaction is settled a given number, say three to ten, days after the transaction date. The significance of rolling settlement and of shortened settlement times is that when investors sell shares, the proceeds get paid into their account more quickly.
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