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Delivery Versus Payment

   Also found in: Acronyms, Wikipedia 0.01 sec.
Delivery versus payment
A in which the buyer's payment for securities is due at transaction the time of delivery (usually to a bank acting as agent for the buyer) upon receipt of the securities. The payment may be made by bank wire, check, or direct credit to an account.

delivery versus payment (DVP)
A settlement procedure in which a customer instructs that he or she will make immediate payment upon delivery of the purchased security. Also called cash on delivery. Compare receive versus payment.

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.


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