When a stock is sold, how long until that money you've got from the sale is made available for reinvestment? It shows that I have it in my account, but it isn't shown in my spending power, it's holdings. How long does that take, or what has to happen in order for it to be reinvestible?
2007-09-24 06:38:27 · 3 answers · asked by WilliamD 2 in Business & Finance ➔ Investing
Once the trade settles , which is a few days after the trade date, you will have the fund to reinvest. If you have a margin account, you can probably do trades around recieving that money earlier than settlement.
2007-09-24 06:45:17 · answer #1 · answered by redwine 6 · 0⤊ 0⤋
In a cash account, which is what you have if its an ira or if if its not a margin account....
You sell a stock and you have 3 days to deliver it (your clearing company does.) Then you get the cash.
At TDAmeritrade they let me buy again right away. Unless I sell those before the three days is up from the previous sale. I don't know if all companies are like this but I think so.
Example: Sell $5000 ABC which was held for a year on monday. Buy $5000 IBM on monday with the same $5000 which is all I have in account. Tuesday IBM goes up big and I sell for a 4% gain. I then try to buy something else but I have no buying power. Until the ABC sale puts the cash back into my account. Which will be Thursday.
This one got me the first time it happened as well.
2007-09-24 07:11:55 · answer #2 · answered by brian-the-brain 5 · 0⤊ 0⤋
The third business day after the date the trade date. If order was executed after hours, the trade date of record would be the following business day.
2007-09-24 07:04:08 · answer #3 · answered by Ted 7 · 1⤊ 0⤋