Processing the trade
Stocks change hands seamlessly in the U.S.
— and in other countries around the world — through
a two-step process of clearing and
settlement.
When it ends, generally within three days after the day your order
was executed, or T+3, securities and cash have changed hands.
That exchange occurs so dependably, and with
such frequency and uniformity, that most investors never think
about it. Understanding how it works may not make you a more frequent
investor, or a richer one. But it will give you a clearer sense
of how the stock market functions. |
