The risk that a trade will not settle. For example, a buyer may not receive delivery of the securities he/she bought by the settlement date. A failure to deliver can occur because of the negligence or deliberate withholding on the part of the seller. If a buyer does not receive the securities, he/she is not obligated to make payment until delivery is made, but it renders him/her unable to resell or conduct other activities that would advance his/her investment goals.
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