Settlement time refers to the period it takes to finalize a transaction, such as the transfer of assets or funds, after an agreement has been made. This process is crucial in various fields, including finance and real estate, as it ensures that all parties fulfill their obligations before the deal is officially completed. In financial markets, settlement time can vary depending on the type of transaction. For example, stock trades typically settle within two business days, while real estate transactions may take weeks to finalize. Understanding settlement time helps individuals and businesses plan their finances and manage expectations during transactions.