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. Paid In Capital

    The amount of capital "paid in" by investors during common or ...
  2. Paid-Up Capital

    The amount of a company's capital that has been funded by shareholders. ...
  3. Margin Call

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

    A brokerage account in which the broker lends the customer cash ...
  5. Settlement Date

    1. The date by which an executed security trade must be settled. ...
  6. Broker

    1. An individual or firm that charges a fee or commission for ...
RELATED FAQS
  1. What do T+1, T+2 and T+3 mean?

    Whenever you buy or sell a stock, bond or mutual fund, there are two important dates of which you should always be aware: ...
Related Articles
  1. Investing Basics

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  2. Retirement

    Life Insurance: How To Get the Most Out Of Your Policy

    There are many benefits to owning a life insurance policy - if you get the right one for you.
  3. Options & Futures

    Margin Trading

    Find out what margin is, how margin calls work, the advantages of leverage and why using margin can be risky.
  4. Brokers

    How Brokerage Fees Work

    What you need to know about fees when choosing between a full service and discount broker.
  5. Investing

    What is Asset Management?

    In the investment world, asset management refers to active management of an investor’s portfolio by a financial services company – usually an investment bank.
  6. Brokers

    OptionsXpress Vs. OptionsHouse: Which One To Pick?

    OptionsXpress and OptionsBroker -- each offers a price mix and set of services suitable for certain investors based on their trade approach and priorities.
  7. Professionals

    How to Choose a Robo-advisor? Follow the Money

    Which of the many robo-advisors will still be around in a decade? Here's an informal look at who might thrive and who might simply survive.
  8. Investing Basics

    Why Do Penny Stocks Fail?

    Penny stocks are speculative and highly risky investments. Lack of government and stock exchange oversight and general information leaves penny stock investors open to sudden losses.
  9. Brokers

    Do You Know How To Beat Your Broker?

    Want more returns? Give less of it to your broker! Keep your costs down, starting with broker costs.
  10. Brokers

    Key Differences Between M&A Advisors And Business Brokers

    For a buy, sale or partnership for one's business, one needs brokers and advisors to proceed ahead. Here are the key differences between business brokers and M&A advisors.

You May Also Like

Hot Definitions
  1. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  2. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  3. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  4. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  5. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  6. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
Trading Center