Paid-Up

DEFINITION of 'Paid-Up'

The state of a settlement when all payment obligations for a security have been completed in a customer account. When an individual has paid up, he or she has paid for the security in full.

BREAKING DOWN 'Paid-Up'

For example, when an investor buys stock, he/she is given three days to pay (known as the three-day settlement period). If the investor does not pay the balance owing for the purchase by day three, the brokerage has the right to liquidate the holdings until the balance is paid-up, or paid in full. This also applies to margin accounts with outstanding margin calls and interest charges that need to be paid-up before a broker will allow a client to resume trading in the account.

RELATED TERMS
  1. Paid-Up Capital

    The amount of a company's capital that has been funded by shareholders. ...
  2. Paid-Up Additional Insurance

    Additional whole life insurance that a policyholder purchases ...
  3. Margin Account

    A brokerage account in which the broker lends the customer cash ...
  4. Settlement Risk

    The risk that one party will fail to deliver the terms of a contract ...
  5. Adjusted Debit Balance

    The amount in a margin account that is owed to the broker, minus ...
  6. Settlement Period

    The period of time between the settlement date and the transaction ...
Related Articles
  1. Trading

    Contrasting Paid-Up Capital And Share Capital

    Before a publicly traded company can sell stock, it must set a limit on the amount of capital it’s authorized to raise by selling those shares.
  2. ETFs & Mutual Funds

    What is a Settlement Date?

    A settlement date is the day a security trade must be settled.
  3. Investing

    Paid-Up Capital

    Paid-Up Capital is listed in the equity section of the balance sheet. It represents the amount of money shareholders have paid into the company by purchasing shares. It’s essentially two accounts, ...
  4. Markets

    The Foundation Of Structured Settlements

    This annuitized payment setup should be arranged through impartial attorneys and tax agents.
  5. Investing

    The Truth About IRS Tax Settlement Firms

    These companies claim that they can reduce or even eliminate what you owe to the IRS. Find out the facts behind this alluring fiction.
  6. Trading

    Profit From Unwanted Life Policies With Life Settlement

    With a life settlement you could cash in on your policy money now.
  7. Personal Finance

    A Guide To Debt Settlement

    Find out how you can negotiate your way to a lower debt load by paying up front.
  8. Trading

    Introduction to Margin Accounts

    Find out what your broker is doing with your securities when you invest on margin.
  9. Trading

    Buying on Margin

    When an investor buys on margin, he or she pays a portion of the stock price – called the margin -- and borrows the rest from a stockbroker. The purchased stocks then serve as collateral for ...
  10. Managing Wealth

    What's a Brokerage Account?

    A brokerage account is a contractual arrangement between an investor and a licensed securities broker or brokerage.
RELATED FAQS
  1. How does monetary policy influence the Fisher effect?

    Find out if paid-up capital generated by the sale of stock has to be repaid by the issuing company and how these funds are ... Read Answer >>
  2. What is the difference between paid-up capital and share capital?

    Learn to differentiate between authorized share capital and paid-up capital. See why paid-up capital can never exceed authorized ... Read Answer >>
  3. What is the difference between called-up share capital and paid-up share capital?

    Find out about the difference between called-up and paid-up share capital, including an explanation of the four categories ... Read Answer >>
  4. How will debt settlement affect my credit score?

    Learn how a debt settlement arrangement, though sometimes the best option to eliminate an outstanding debt, can negatively ... Read Answer >>
  5. How long are accounts receivable allowed to be outstanding?

    Learn about accounts receivable, including how long they typically remain outstanding, and how their payment or lack of payment ... Read Answer >>
  6. What does it mean when the shares in my account have been liquidated?

    An account liquidation occurs when the holdings of an account are sold off by the firm in which the account was created. ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center