Course Content
Introduction
The stock market is a marketplace where shares of publicly listed companies are bought and sold. It plays a central role in the modern economy, acting as a bridge between businesses that need capital and investors who have money to invest. The origins of the stock market trace back to the early 1600s, when the Dutch East India Company issued the first shares on the Amsterdam Stock Exchange. This allowed the company to raise money from the public to fund its trade ventures, in return for a share of the profits. Over time, this concept evolved, and today, stock markets exist all over the world, with major exchanges like the New York Stock Exchange (NYSE), NASDAQ, and London Stock Exchange facilitating trillions of dollars in trade. At its core, the stock market enables businesses to grow. By offering shares to the public through a process called an Initial Public Offering (IPO), companies can raise large amounts of money to expand operations, invest in research, or develop new products—without having to rely solely on banks or private lenders. In return, investors get the opportunity to share in the company’s success through rising share prices and dividends. Investing in the stock market can be a powerful way to build wealth over time. Wise investments in strong companies can generate solid returns, especially when held for the long term. Many individuals have grown their savings substantially by investing in companies that have thrived. However, it’s important to remember that the stock market carries risks. Prices can go up, but they can also go down—sometimes sharply. Economic downturns, company mismanagement, or shifts in the global market can all lead to losses. For beginners, it's essential to approach investing with caution, avoid chasing “get rich quick” schemes, and take the time to understand what you're investing in. In short, the stock market is a powerful tool for economic growth and personal financial development—but like all tools, it must be used wisely.
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Beginners guide to investing in the Stock Market

Trade Date vs Settlement Date, What is T + 2?

 

When you buy or sell a stock, the transaction might seem instant — but behind the scenes, there’s a formal process that takes a couple of days to fully complete. This is where T+2 settlement comes in.

 


 

What Is the Trade Date (T)?

 

The Trade Date (known as T) is the day you make the agreement to buy or sell a stock.

  • This is the date the order is placed and matched with a buyer or seller.

  • Prices are locked in based on this day’s trading.

  • You’ll see the trade appear in your account almost immediately.

 

Example:
If you buy 100 shares of a company on Monday, that’s your T (Trade Date).

 


 

What Is the Settlement Date (T+2)?

 

The Settlement Date is when the actual exchange of money and shares happens.

  • As of now in most major markets, settlement follows a T+2 system.

  • This means two business days after the trade date, ownership is officially transferred.

  • Your broker sends payment to the seller, and the shares are delivered into your account.

 

Example:
You bought shares on Monday (T) → The trade is settled on Wednesday (T+2).

 


 

Why Does Settlement Take 2 Days?

 

While trading platforms are digital, the backend process involves:

  • Verifying trade details

  • Transferring funds between financial institutions

  • Moving the shares between accounts

 

This short delay ensures everything is cleared and accurate before finalizing the transaction.