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T+1 Settlement
Market Mechanics
T+1 means a stock trade settles, with shares and cash formally changing hands, one business day after the trade date.
The US stock market moved from T+2 to T+1 in May 2024. The practical consequence for dividends: to receive one, you need to have bought the stock by the close of the business day before the ex-dividend date.
Example
Shares sold on a Tuesday settle on Wednesday, and your broker can treat that cash as settled from then on.
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