An investor purchases 100 shares of a company through a brokerage account. What is the standard settlement period for this equity trade on Canadian exchanges?

Question: An investor purchases 100 shares of a company through a brokerage account. What is the standard settlement period for this equity trade on Canadian exchanges?

Answer options:

• T+0 (trade date)
• T+1 (trade date plus one business day) ✅ T+2 (trade date plus two business days)
• T+3 (trade date plus three business days)

Correct answer: T+2 (trade date plus two business days)

Explanation: Equity trades on Canadian exchanges typically settle on a T+2 basis, meaning the transfer of ownership and funds occurs two business days after the trade date.