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Settlement rate
Settlement rateThe 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. RELATED TERMS-------------------------------------- Discounting Calculating the present value of a future amount. Discounting is opposite to compounding. Pension A regular sum of money paid to a retired worker in return for past services or contributions. Company A proprietorship, partnership, corporation, or other form of enterprise that engages in business. Obligation A legal responsibility, such as to repay a debt. SIMILAR TERMS-------------------------------------- Settle To pay a debt or bill or account. 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 risk The risk that one party will deliver and the counterparty will not be able to pay and vice versa. PREVIOUS AND NEXT 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 Settlement risk The risk that one party will deliver and the counterparty will not be able to pay and vice versa. Severally but not jointly An agreement between members of an underwriting group buy a new issue (severally), but not to assume joint liability for shares left unsold by other members. Severance A settlement received after being released from a corporation. In the context of corporate governance, an agreement that assures high-level executives of their positions or some compensation and are not contingent upon a change in control. Shadow calendar A backlog of securities issues registered with the SEC, awaiting the determination of an offer date. Shadow pricing The arbitrary assignment of dollar values to non-marketed goods. We thank you for using the Financial Dictionary to search for Settlement rate. If you have a better definition for Settlement rate than the one presented here, please let us know by making use of the suggest a term option. This definition of Settlement rate may be disputed by other professionals. Our attempt is to provide easy definitions on Settlement rate and any other medical topic for the public at large.
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