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Cash on Delivery |
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Cash on delivery (COD) In the context of securities, this refers to the practice of institutional investors paying the full purchase price for securities in cash. Delivery Versus Payment A settlement procedure in which the buyer and the seller of a security agree that the seller will pay the buyer upon the security's delivery to the seller. This agreement is designed to reduce risk to both parties: if the delivery and payment do not occur at the same time there is a risk, however small, of theft by one party or the other. It is more commonly known as cash on delivery.
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