| Settlement is what happens after you or your broker have bought or sold shares. There are two aspects to it: transfer of ownership (i.e. the delivery of what has been bought and sold) and the payment for the shares or other security. The timing of payment will depend on the settlement time of the transaction. The industry standard varies between security type Ñ it used to be T+5 for equities but this was cut to T+3 in February 2001, with the 5 and 3 indicating the number of working days after the transaction date by which settlement must be complete.
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