Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved