Paying Agent

A A A

DEFINITION

An agent who accepts payments from the issuer of a security and then distributes the payments to the holders of the security. Also known as a "disbursing agent."

INVESTOPEDIA EXPLAINS

A bank is usually the paying agent designated to make dividend, coupon, and principal payments to the security holder on behalf of the issuer.


RELATED TERMS
  1. Del Credere Agency

    In business law, a del credere agency is a type of principal-agent relationship ...
  2. Coupon

    The interest rate stated on a bond when it's issued. The coupon is typically ...
  3. Interest

    1. The charge for the privilege of borrowing money, typically expressed as an ...
  4. Principal

    1. The amount borrowed or the amount still owed on a loan, separate from interest. ...
  5. Dividend

    1. A distribution of a portion of a company's earnings, decided by the board ...
  6. Volcker Rule

    The Volcker rule separates investment banking, private equity and proprietary ...
  7. Investment Bank - IB

    A financial intermediary that performs a variety of services. These include ...
  8. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited ...
  9. European Investment Bank - EIB

    A non-profit European Union institution based in Luxembourg that makes loans, ...
  10. Underwriting Expenses

    Costs and expenditures associated with underwriting activity. Underwriting expenses ...
Related Articles
  1. How And Why Do Companies Pay Dividends?
    Investing Basics

    How And Why Do Companies Pay Dividends?

  2. Why Dividends Matter
    Fundamental Analysis

    Why Dividends Matter

  3. Dissecting Declarations, Ex-Dividends ...
    Investing Basics

    Dissecting Declarations, Ex-Dividends ...

  4. Bond Basics Tutorial
    Retirement

    Bond Basics Tutorial

  5. A Primer On Preferred Stocks
    Bonds & Fixed Income

    A Primer On Preferred Stocks

  6. How The Sarbanes-Oxley Era Affected ...
    Fundamental Analysis

    How The Sarbanes-Oxley Era Affected ...

  7. Synthetic vs Physical ETFs
    Mutual Funds & ETFs

    Synthetic vs Physical ETFs

  8. The Biggest IPO Flops
    Investing

    The Biggest IPO Flops

  9. What Is Private Equity?
    Investing Basics

    What Is Private Equity?

  10. Financial Careers According To Hollywood
    Professionals

    Financial Careers According To Hollywood

comments powered by Disqus
Hot Definitions
  1. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  2. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  3. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  4. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  5. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  6. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
Trading Center