Settlement periods apply to the purchase and sale of stocks and shares on a stock market. For the exchange we trade on, this usually takes two working days.
If buying, once the stock has settled, ownership is conferred to the buyer.
If selling, one the stock settles, the cash raised is made available to the seller.
So if, for example, if we sell share on your behalf on a Friday and the following Monday is a bank holiday, you will receive funds, and the buyer will receive the shares, on the following Wednesday.
Note: Your funds will not be available for withdrawal until the sale of stock has fully settled.
It’s worth keeping settlement periods in mind when you want to withdraw funds, as it will invariably add a short delay.