Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Settlement When you exercise stock options and sell the underlying shares of stock, the proceeds post to your account on the settlement date–the date the broker pays for securities bought by an investor or receives payment from the investor who purchased the securities. A publicly traded stock usually settles on the second business day following the date of the trade. However, transactions involving stock plan assets may take longer. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.