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Settle
SettleTo pay a debt or bill or account. RELATED TERMS-------------------------------------- Debt Money borrowed. Account 1) In the context of bookkeeping, refers to the ledger pages upon which various assets, liabilities, income, and expenses are represented. 2) In the context of investment banking, refers to the status of securities sold and owned or the relationship between parties to an underwriting syndicate. 3) In the context of securities, the relationship between a client and a broker/dealer firm allowing the firm's employee to be the client's buying and selling agent. SIMILAR TERMS-------------------------------------- Settle price An average of the trading prices in the futures market during the last few minutes of trading. Settlement When payment is made for a trade. Settlement date The date on which payment is made to settle a trade. For stocks traded on US exchanges, settlement is currently three business days after the trade. For mutual funds, settlement usually occurs in the US the day following the trade. In some regional markets, foreign shares may require months to settle. Settlement options The various possibilities open to a beneficiary under a life insurance policy as to how the benefit will be paid out. Settlement price A figure determined by the closing range that is used to calculate gains and losses in futures market accounts. Settlement rate The rate suggested in Financial Accounting Standards Board (FASB) 87 for discounting the obligations of a pension plan. The rate at which the pension benefits could be effectively settled if the company sponsoring the pension plan wishes to terminate its pension obligation. Settlement risk The risk that one party will deliver and the counterparty will not be able to pay and vice versa. PREVIOUS AND NEXT TERMS-------------------------------------- Services Activities offered for sale to customers, (advice, transport, banking, insurance, restaurants, hotel rooms, etc.) Set aside A percentage of a municipal or corporate bond underwriting that is allocated for handling by a minority-owned broker-dealer firm. Set of contracts perspective View of corporation as a set of contracting relationships among individuals who have conflicting objectives, such as shareholders or managers. The corporation is a legal construct that serves as the nexus for the contracting relationships. Set up Applies mainly to convertible securities. Arbitrage involving going long the convertible and short a certain percentage of the underlying common. Setoff Money held on behalf of a borrower that may be applied to repay the loan, but usually without the permission of the borrower. Settle Settle price An average of the trading prices in the futures market during the last few minutes of trading. Settlement When payment is made for a trade. Settlement date The date on which payment is made to settle a trade. For stocks traded on US exchanges, settlement is currently three business days after the trade. For mutual funds, settlement usually occurs in the US the day following the trade. In some regional markets, foreign shares may require months to settle. Settlement options The various possibilities open to a beneficiary under a life insurance policy as to how the benefit will be paid out. Settlement price A figure determined by the closing range that is used to calculate gains and losses in futures market accounts. We thank you for using the Financial Dictionary to search for Settle. If you have a better definition for Settle than the one presented here, please let us know by making use of the suggest a term option. This definition of Settle may be disputed by other professionals. Our attempt is to provide easy definitions on Settle and any other medical topic for the public at large.
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