A type of account
that serves as a holding account until all funds
are moved to other appropriate accounts
. For example, a clearinghouse
might set up a transitory account to facilitate the transfer
shares between the buyer
. The buyer sends the shares to the clearinghouse, which holds them in the transitory account until the seller receives payment
. Once the shares are sent by the seller to the buyer and the seller receives payment, the transitory account is closed.