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Transaction

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Dictionary Says

Definition of 'Transaction'

An agreement between a buyer and a seller for the exchange of goods or services for payment.
Investopedia Says

Investopedia explains 'Transaction'

The parties participating in a transaction have an obligation to perform their part. For example, for two parties involved in a futures contract, the seller is obligated to sell and deliver the underlying asset and the buyer is contractually obligated to pay the agreed upon price and accept the delivery.

Related Definitions

  •

    Futures Contract

    A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. ...
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  • Fitch Sheet

    A data sheet containing historical listings of trades for a security. The fitch sheet shows a variety of transaction details, including the price, volume, time of trade and on which ...
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  • Transaction Costs

    Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price at which ...
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    • Transaction Exposure

      The risk, faced by companies involved in international trade, that currency exchange rates will change after the companies have already entered into financial obligations. Such exposure ...
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    • Transaction Risk

      The exchange rate risk associated with the time delay between entering into a contract and settling it. The greater the time differential between the entrance and settlement of the ...
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    • Exempt Transaction

      A type of securities transaction where a business does not need to file registrations with any regulatory bodies, provided the number of securities involved is relatively minor compared ...
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    • Currency Transaction Report - CTR

      A bank form used in the United States to help prevent money laundering. The form must be filled out by a bank representative who helps with a currency transaction of $10,000 or more.
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    • Counterparty

      The other party that participates in a financial transaction. Every transaction must have a counterparty in order for the transaction to go through. More specifically, every buyer of an ...
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    • Cashless Conversion

      The direct conversion of ownership (from one ownership type to another) of an underlying asset without any initial cash outlay from the investor. Many cashless conversions are ...
      Read More »

    • Zone Of Possible Agreement

      Not a physical place, the zone of possible agreement is considered an area where two or more negotiating parties may find common ground. It is this area where parties will often ...
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