What is Business Day?
A business day is a popular unit of time measure that refers to any day on which normal business operations are conducted. In the USA, a business day typically refers to any weekday. And it excludes weekends(Saturdays and Sundays) and public holidays. There are five business days (Monday to Friday) in a normal USA workweek from 9 a.m. to 5 p.m. local time. So it has 52.14 weeks in a year and 10 USA federal holidays. It will make out 250 to 253 business days in any calendar year. Other countries have different workweeks and business days. For example, in Mexico, India, and Columbia, the workweek is started on Monday and ends on Saturday. While in Middle Eastern countries, the workweek is from Sunday through Thursday.
How do business days affect you?
The business day can affect you in many ways, such as banking, shipping, contracts, and stock trades.
- Banking:
You can use bank services other than working days. The bank is closed on weekends and public holidays. When you deposit a check in the bank, your bank may tell you that funds will be released after some business days(two business days). If you deposit the check on a Friday, you can only use the funds on Wednesday or Thursday (if the following Monday is a holiday). Business days also affect online bill payment services. On a Monday, you can initiate a next-day payment from your bank account to your American Express (AXP 0.94%) credit card. But if you order that payment on Friday, you will receive it in your account the next Monday (or Tuesday if Monday is a holiday).
- Shipping:
Retailers and shippers commonly quote shipping times in business days. Online orders and shipments are processed and delivered on business days. So delivery times may vary depending on when the order was placed. For example, Priority Mail by USPS promises delivery in one to three business days. It means your package could be en route for as long as six calendar days.
- Contracts:
Contracts are mostly affect by business days. These are related to calendar days, business days, or both and include time frames. For example, Florida real estate contracts may specify time frames in calendar days. But if the time frame ends on a weekend or public holiday, the deadline will extend to the next business day.
A business asset purchase agreement is another example. It may specify a delivery deadline or asset inspection period in business days. But if you are a party to a contract, it is critical to interpret those deadlines correctly.
- Stock trades:
The stock market operates on business days, and trading does not occur on weekends or holidays. If you attempt to trade on a Saturday, you will likely find the market closed. Since trading is not active on Saturdays, there will be no price movement or changes in asset values. And you could not place the order with your brokerage on Saturday. Your order is not executed on Saturday and will remain pending until the market opens. Once your order is processed, you must wait two business days for the stock to transfer into your account.
- Travel:
If you decide to cash out your account, buy an RV, and travel around the country with your dog. And it would be best if you hit the road as soon as possible. Plan your vacation on business days, like a Monday in March or August. Because there are no public holidays, you could start your new life the next week. You may assume the RV you want is waiting for you on a sales lot. But you decided to buy on December 23, and the process will take longer.
Why? Because there are fewer business days in the weeks ahead. First, the Christmas holiday will delay the settlement of your DV. And there is a second delay if you must transfer the cash to another account since New Year's Day is the following week. So pay attention to business days. The difference between business days and calendar days can be inconvenient.