receive versus payment
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Receive versus payment
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
receive versus payment (RVP)
A settlement procedure in which a customer instructs that the delivery of a security will be made immediately upon receipt of proceeds from the sale of the security. Compare delivery versus payment.
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.