Trade Confirmation & Completion
Even though the trade was made quickly, time is still required to transfer the money and stock between the parties - typically three business days.
Meghan checks her online account and sees the purchase of her 500 shares of TNT.
She continues to monitor the progress of the company to make sure her investment is doing well. Soon she reads that orders for the new fiber-optic cable are even better than expected and the price of her stock has risen from $20 to $25. She could sell now and make a quick $2,500 profit, but she's sure the price will head higher and holds on to her stock.
This is her first stock purchase, but she's sure it won't be her last!
Three days after submitting his trade request, Drew receives $9,850 (his $10,000 trade minus the $150 commission) into his checking account.
He and Emily make an offer on their first home and it is accepted. His larger down payment means a lower monthly mortgage.
He made a profit on his investment - he bought TNT years ago at $7 a share and his $3,500 investment turned into almost $10,000.
He and Emily might have made a little more money by holding on to the stock, but they don't even notice - they're too busy picking out paint colors for Audrey's room, and now with their own house, deciding what to name their new puppy!