Clearing House
An institution that processes financial transactions, such as the exchange of securities, between two parties.
More Details
A clearing house is a financial institution that acts as an intermediary between two parties in a financial transaction. Its main function is to ensure the smooth and efficient settlement of transactions between the two parties.
Example
If you were to buy shares of a publicly traded company through a brokerage firm, the trade would be cleared through a clearing house. This helps to reduce risk and increase the efficiency of your transaction.
Related Terms
Share Certificate
A share certificate at a credit union represents ownership of a deposited amount for a fixed term, earning interest.
Co-Signer
A person who signs a loan or credit application with the primary borrower, accepting responsibility for the debt if the primary borrower defaults.
ATM
An Automated Teller Machine (ATM) is a machine that allows bank or credit union customers to make deposits, withdrawals, and other transactions.

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