Settlement Terms

Definition

Settlement Terms. Contract terms that define the commitment to and mechanism for settling one or more sides of a transaction

In general, settlement involves arrangement of disposition of property, typically for legal reasons. With respect to financial transactions, it involves completion of a trade, either between brokers or agents, or beween a broker and client. This may include settlement in cash, either for the entire transaction or for the cash leg of a transaction, either now or at some specified time in the future.

See Also

• Barron's Dictionary of Business and Economics Terms, Fifth Edition, 2012

Disclaimer

This entry annotates a FIBO Ontology Class. FIBO is a trademark and the FIBO Ontology is copyright of the EDM Council, released under the MIT Open Source License. There is no guarantee that the content of this page will remain aligned with, or correctly interprets, the concepts covered by the FIBO ontology.