Paid-Up

AAA

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.

INVESTOPEDIA EXPLAINS '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. T+1 (T+2,T+3)

    Abbreviations that refer to the settlement date of security transactions. ...
  2. Margin Call

    A broker's demand on an investor using margin to deposit additional ...
  3. Margin Account

    A brokerage account in which the broker lends the customer cash ...
  4. Paid-Up Capital

    The amount of a company's capital that has been funded by shareholders. ...
  5. Paid In Capital

    The amount of capital "paid in" by investors during common or ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
Related Articles
  1. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  2. Life Insurance: How To Get the Most ...
    Retirement

    Life Insurance: How To Get the Most ...

  3. What do T+1, T+2 and T+3 mean?
    Retirement

    What do T+1, T+2 and T+3 mean?

  4. Margin Trading
    Options & Futures

    Margin Trading

Hot Definitions
  1. Return On Sales - ROS

    A ratio widely used to evaluate a company's operational efficiency. ROS is also known as a firm's "operating profit margin". ...
  2. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  3. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  4. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  5. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  6. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
Trading Center