transitory account
Definition
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 of stock shares between the buyer and seller. 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.
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transitory account is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
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