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.

cash on delivery

cash on delivery (COD)

an arrangement whereby goods previously ordered are paid for when delivered.