Window Settlement

DEFINITION of 'Window Settlement'

A form of settlement between dealers whereby trades are settled through the physical comparison of transactions and actual money and stocks are transferred.

BREAKING DOWN 'Window Settlement'

With the increased role of clearing corporations and depositories, window settlement is not as common as it once was. Typically, this form of settlement will only occur when one or both the participating parties to a trade are not members of the same clearing firm.

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RELATED FAQS
  1. When is a share purchase marked as 'settled' by a brokerage?

    Understand the process of purchasing stock, including ordering, clearing and settlement, and learn when a stock trade is ... Read Answer >>
  2. Do I own a stock as of the trade date or the settlement date?

    When it comes to buying shares, there are two key dates involved in the transaction. The first date is the trade date, which ... Read Answer >>
  3. Will a debt settlement program affect my credit score?

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  4. If I purchase a stock and it gives me the executed date and the stock sale price ...

  5. How will debt settlement affect my credit score?

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  6. Do you get a dividend if you have the stock on the ex-dividend date, but sell before ...

    Suppose the ex-dividend date is a Monday and the record date is a Wednesday. If you own the stock before & on the ex-dividend ... Read Answer >>
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