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Finance Dictionary and Glossary of Investment Terms
free delivery
Definition 1.
A transaction in which securities are delivered before any payment is made. Free delivery is essentially an extension of credit to the borrower of the securities, and involves the risk of the buyer not paying.
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Definition 2.
Securities industry procedure whereby delivery of securities sold is made to the buying customer's bank without requiring immediate payment; thus a credit agreement of sorts. Antithesis of delivery vs. payment.
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