Transaction Date
The transaction date refers to the date on which a financial transaction takes place. This date is crucial in the world of trading and investing because it determines when a transaction is considered to be complete and when the buyer becomes the legal owner of the asset being bought or sold.
For example, in the stock market, the transaction date is when a buy or sell order is executed. This date is important for calculating the cost basis of an investment, determining capital gains or losses, and for tax purposes.
It is important to note that the transaction date is different from the settlement date, which is the date on which the financial transaction is completed by transferring the asset and payment between the buyer and seller.
Understanding the transaction date is essential for investors and traders to track the timing of their trades, accurately report their gains and losses, and ensure compliance with regulatory requirements.
