InvestorWords.com

Definitions (2)

1. In banking, it is the incapacity of a bank to honor its repayment commitments to other banks. In inter-bank fund transfer systems this inability can cause catastrophic cascading failure of several or all banks associated with the transaction.

2. In securities trading, it is the situation where on the settlement date either a seller is unable to deliver the contracted securities (called a short fail) or the buyer is unable to pay for them (called a long fail).

• Introduction to Insurance
• An Overview of the Investment Options Suited for Educational Planning
• Introduction to Inflation and its Impact
• S&P 500, Wilshire 5000 and Other Indexes
• Buying and Selling Investments
• An Overview of Credit Regulations

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