paying agent(redirected from Paying Agents)
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
An institution, usually an investment bank, that accepts funds from the issuer of a security and distributes them to that security's holders. In stocks, a paying agent receive dividends, which it then disburses to stockholders. In bonds, it receives coupon payments, which it then gives to bondholders. A paying agent acts as an intermediary in these transactions, and receives a fee for these services. See also: Outsourcing.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A financial institution that makes the payments to the holders of an issuer's securities. For example, an indenture will name a paying agent responsible for making interest and principal payments on a bond issue.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.