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. Which price of a stock do I end up purchasing?

    If I purchase a stock, it gives me the executed date and the stock sale price being X. Do I get the stock at that price X ... Read Answer >>
  4. 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: ... Read Answer >>
  5. Can a special needs trust protect my settlement from collections?

    I am on SSI and expecting a settlement from a class action lawsuit. I have several accounts in collections. I'm thinking ... Read Answer >>
  6. Will a debt settlement program affect my credit score?

    Understand the impact of negotiating debt settlements on your credit score, and learn what factors determine the size of ... Read Answer >>
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