T+1 settlement: Important information for investors

Reported 6 months ago

The article discusses a new rule by the Securities and Exchange Commission called Trading Day Plus One Business Day (T+1), which aims to speed up the settlement of buy and sell trades for investors. This new regulation reduces the settlement time from two days to one day for transactions involving stocks, corporate bonds, ETFs, municipal securities, some mutual funds, and limited partnerships. The rule change is seen as a way to make portfolio assets more liquid and improve trading efficiency, building upon previous settlement cycle reductions.

Source: YAHOO

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