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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Escrow

Definition:

Something held by an independent third party on behalf of the buyer and seller in a transaction. Securities and cash are often held in escrow pending confirmation by the escrow agent (the guy who's holding this stuff) that both sides have fulfilled their obligations; the agent then releases the assets to the respective parties.

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