- Settlement
- When payment is made for a trade. The New York Times Financial Glossary
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1. [countable, uncountable] an official agreement or decision that ends an argument between two people or organizations:• After 15 years of litigation, appeals lawyers reached a settlement with the insurance company.
• The inflation rate fell, reflecting recent low wage settlements.
• increases in public sector pay settlements
• The company made a full and final settlement of £30 million.
• Non-US residents are prepared to use the dollar in settlement of debts.
3. [uncountable] FINANCE the process of making payments relating to cheques, buying investments etc; = CLEARING:• The Bank of England and the London Stock Exchange developed a computerised settlement system for transactions in gilt-edged securities.
ˈcash ˌsettlement [countable, uncountable] FINANCEwhen shares etc that are bought on a financial market are paid for with money, rather than with other investments:• After mediation, a cash settlement was agreed upon.
ˌrolling ˈsettlement [uncountable] FINANCEa rule stating that when you buy or sell shares on the London Stock Exchange, the payment must be made within a certain number of days from the time when the contract is made:• Dealings here are for seven-day rolling settlement except in the case of new issues.
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Payment for securities or commodities in exchange for their delivery. Usually takes place some time after the deal itself.* * *
settlement UK US /ˈsetlmənt/ noun► [C or U] an official agreement or decision that ends an argument, often involving a payment of money: »negotiate/reach a settlement
»The lawyer negotiated an out-of-court settlement of $2 million.
► [C or U] payment of a debt: in settlement of sth »I wrote a check for $200 in settlement of my debts.
»Be sure to make full and final settlement by the repayment deadline.
► [U] FINANCE, STOCK MARKET the process by which shares and money are exchanged at the end of a day of trading on a financial market: »The Stock Exchange has an electronic share settlement system.
► [U] the process by which payments are made on cheques: »This charge is made for the returned cheque due to insufficient funds for cheque settlement.
→ See also THE BANK FOR INTERNATIONAL SETTLEMENTS(Cf. ↑the Bank for International Settlements), CASH SETTLEMENT(Cf. ↑cash settlement), ROLLING SETTLEMENT(Cf. ↑rolling settlement)
Financial and business terms. 2012.