Final answer:
The process of buying or selling shares through a stockbroker on a major stock exchange usually takes place almost instantaneously during regular trading hours due to high volume and advanced electronic trading systems. However, limit orders may not execute immediately, and actual stock settlement typically takes two business days (T+2).
Step-by-step explanation:
When Mateo works with his stockbroker to execute buy or sell orders for shares of stock, the process he refers to typically takes place on a major stock exchange. The time it takes for an order to be executed can depend on various factors, including the type of order placed, current market conditions, and the system the stock exchange uses. Generally, for most liquid stocks, buy or sell orders can be executed almost instantaneously during regular trading hours due to the high volume of transactions and advanced electronic trading systems.
In a scenario where the stock market faces high volatility or issues with the trading system, the process might take longer. For example, limit orders, where Mateo specifies a price at which he's willing to buy or sell a stock, may not execute immediately if the stock's price doesn't hit the specified limit. On the other hand, a market order, where no specific price is set and the transaction is carried out at the current market price, tends to be executed much quicker.
It is also important to note that the actual settlement of stocks, which refers to the transfer of ownership of the stocks from the seller to the buyer, typically takes two business days after the trade is executed (referred to as T+2).