TeachMeFinance.com - explain Clearing
Clearing -- Clearing by a bank is the presentation at the
clearing house of collectable items (checks, drafts, promissory
notes, etc.) which it holds, the receipt in exchange of the
items payable by it, and the settlement of the difference (balance)
by collection of or payment of the amount of the difference.
Clearing a check or a bill of exchange (draft) consists in
presenting it for payment.
Clearing by a stock broker is the operation of delivering stocks and receiving pay for them, or the reverse, receiving
stocks and paying for them.
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