Finance Glossary

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DVP

Definition:

This stands for "Delivery v. Payment." If you're selling stock, then you won't be keen on shipping it to the buyer until you've received the buyer's cold, hard cash. At the same time, the buyer ain't likely to part with the cash until it has the stock. A dilemma, indeed. It's resolved through the use of a clearing agent, who functions as the middleman and ensures that both parties get what they bargained for.

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