Acceptance Credit
Acceptance Credit is a method where buyers authorize the transfer of funds to sellers on a specific date once certain terms and conditions are met. This process is facilitated through a letter of credit (LC), which is a promise from a creditworthy bank to ensure payment will be made.There are two types of Acceptance Credit:1. Confirmed Acceptance Credit: The bank guarantees payment to the seller in case the buyer defaults, providing additional security.2. Unconfirmed Acceptance Credit: The bank does not provide a guarantee of payment if the buyer defaults, leaving the seller with more risk.
Related Terms
Dividend Yield
Dividend yield is a percentage ratio that measures the dividends paid per share relative to...
Adjusted Closing Price
The adjusted closing price of a stock reflects modifications made to account for corporate actions—such...
After Market Order (AMO)
After Market Order is an instruction directing a broker to place the order at the...
Post Closing Session
Post Closing Session involves trading securities outside regular market hours. In India, regular trading runs...
Holdings
Holdings refer to the financial assets within an investor’s portfolio. These can encompass a range...
Butterfly Spread
A butterfly spread is an options trading strategy that merges bull and bear spreads to...
