Settlement and ownership: when the shares are yours
A matched order is not yet ownership. This page follows a purchase through clearing and settlement to the record that shows what you hold, and says what to keep and what to check.
Trade, clearing, settlement
A trade is agreed when a buy and a sell order match on the PSE. It is not yet a transfer of money or shares. The trade is then cleared and settled through the exchange's clearing and settlement system, and the shares move to the buyer's scripless holding while the money moves from the buyer's broker.
The number of trading days between a trade and its settlement is set in the exchange's rules and can change; the contract note from the broker states the settlement date for each trade.
What the exchange page shows beside the price
Each stock-data page prints the listing date, the free float level and the foreign ownership limit as well as the price. For these ten, the free float runs from 21.9% to 51.2%: free float is the share of a company's shares that the exchange counts as held by the public rather than by controlling holders.
A low free float means fewer shares are available to trade, which is a property of the company's ownership; it is not a verdict on the company.
Dividends and rights
A company that declares a dividend names a record date; holders on that date receive the payment, and the shares trade without that right from the ex-dividend date. The PSE publishes dividend and rights notices per company on its Edge site, and they are the source for dates. This site does not read them, so it prints no dividend amount or date.
The payment normally reaches you through the broker or the depository; ask which.
Checking what you own
The depository's record is the record of ownership. Your broker's statement should agree with it. If they do not, ask the broker to reconcile before selling or transferring. Keep the contract note of every trade until the shares have settled and appear in the account.
Who keeps which record
Three records exist for one purchase; each has a different job.
| Record | Kept by | What it shows |
|---|---|---|
| Order and contract note | The broker | What you asked for, the price, the quantity, the charges |
| Clearing record | The exchange's clearing house | That the trade was matched and cleared |
| Holding | The depository | How many shares of each company are held in scripless form |
Summary
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Questions before a first share
When do I become the owner?
When the trade settles and the shares are recorded in your account at the depository, not when the order is matched. The contract note gives the settlement date.
What if the broker fails?
Shares recorded for you at the depository are not the broker's property. Money held by a broker is a matter of the broker's terms and the regulator's rules, which this site does not describe.
Does a CFD show up in the depository?
No. A contract for difference, such as the FxPro account this site links to, is a contract with the broker and creates no holding of a listed share anywhere.
Ready to open an account?
The account this site links to is a CFD account on global share prices, not a way to buy PSE shares. Read the difference before signing up.