Information > Financial Terms > This page

Source: Encyclopedia of Banking & Finance (9h Edition) by Charles J Woelfel
(We recommend this as work of authority.)

This term has three applications.

1.   In general, the striking of a balance between two or more parties having mutual dealings with one another and the payment of the debit balance by the debtor (debtors) to the creditor (creditors).

2.   The striking of balances among members of a CLEARINGHOUSE association.

3.   The process by which purchases and sales of securities among brokers are determined and the balances paid off at the stock exchange clearinghouse; the process by which interbroker, non-clearinghouse securities transactions or produce exchange transactions are paid off.  

Back to Information