There is the trade date, which is when the order is executed, and the settlement date 3 days later. For tax purposes the trade date rules.

OK, time for an IRS/Congress "thinking" question. As a practical matter, it wouldn't make any difference if one used the trade date or the settlement date, so long as one used the same date for the taxman.

Is the IRS' mandate of the trade date just a choice to ensure that one uses the same date? Of course the trade date also has the minor advantage of making it "easier" to get a transaction into the current year, vice having it spill over into the next year.

As to the main point of the thread, it's useful to point out that the trade date isn't the same as the date the order was placed--especially on good 'til canceled orders.

Eric Hines