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
Secured Credit Card
A credit card designed to help repair or establish credit with a predetermined credit limit secured by a collateral savings account.
Canceled Check
A physical check that has been paid by the bank and cannot be used again. It may be returned to the payer with their bank statement.
Insufficient Funds
A situation in which an individual or institution does not have enough money in their account to cover a transaction or withdrawal.

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