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When trading with cash in a brokerage account, it may not be clear when you will have full access to the cash after selling a stock. The settlement date, when the buyer gets the shares and the seller gets the money, occurs two trading days after the transaction. This means that if you sell a stock on Monday, you won't receive the cash until Wednesday. Similarly, if you sell shares on Friday, you won't receive the cash until Tuesday. Understanding this two-day lag time between transaction and settlement is key to distinguishing between settled and unsettled funds.
