• Business
  • Crypto
  • Investing
  • Lifestyle
  • Money
  • Glossary
    • A
    • B
    • C
    • D
    • E
Search
Finance Reference
  • Business
    • Reasons Business Owners Should Invest in Insurance
      The Role of a Business Bank Account in New Ventures
      Email marketing: 8 mistakes you should avoid
      Derivatives’ Significance in Managing Risk within the Oil Trading Industry
      Keys to Successfully Entering the Security Guard Industry
  • Crypto
    • 5 Ways to Know the Right Time to Invest in Ethereum
      Tips To Avoid Crypto Casinos Scam
      Bitcoin at 30K – Evolution and predictions
      Understanding Ethereum Nodes and Cryptocurrency Network Infrastructure
      The Crypto Trader – How Anyone Can Trade Bitcoin and Other Cryptocurrencies
  • Investing
    • Selling stocks in the fall: timing and tactics for a smart investment strategy
      TU Experts Choose Forex Trading Best Broker In 2023
      Yum China unveils new growth-oriented strategy, more ambitious financial targets at Investor Day event
      Essential Insights from Kavan Choksi on Why China’s GDP Growth is Slowing Down
      5 Budget-Friendly Tips to Set Up Your First Trading Day
  • Lifestyle
    • 6 Ways You Can Handle Different Diabetes Issues
      How do I know if a cigar is bad?
      Strategies to Improve Your Chances of Winning at Online Casinos
      Discover the Best Payment Options for Online Slot Games
      Why Online Casino Terms and Conditions Are Important?
  • Money
    • Personal Loans: What Are They and What Can They Be Used for?
      Online Casinos That Accept Discover Card: Your Path to Financial Entertainment
      The Best Payment Methods at Australian Online Casinos
      Comparing Credit Cards, Tips and Tricks for Consumers
      Crack the Code – Mastering the Art of Budgeting
  • Glossary
    • Oculus Gift Card
      The Perfect Gift for Gamers – The Oculus Gift Card
      walgreens Cash Checks
      Does Walgreens Cash Checks In 2023? Complete Guide
      How Many Nickels Make $2?
      How Many Nickels Make $2? A Quick Guide
      Visa Provisioning Service
      What is the Visa Provisioning Service on My Bank Statement? Explained
      Fix vs Trunk Club
      Comparing Stitch Fix vs Trunk Club: Which Subscription Box is Best for You?
      AllABCDE
  • Glossary
  • F

Fail

By
rjonesx
-

What is ‘Fail’

In common trading terms, if a seller does not deliver securities or a buyer does not pay owed funds by the settlement date, then the transaction is said to fail. In a stock exchange, this occurs if a stockbroker does not deliver or receive securities, within a specified time after a security sale or a security purchase. When a seller cannot deliver the contracted securities, this is called a short fail. If a buyer is unable to pay for the securities, this is called a long fail.

Explaining ‘Fail’

Presently, firms have three days after the date of a trade to settle stock transactions. Within this time frame, securities and cash must be delivered to the clearing house for settlement. If firms are unable to meet this deadline, a fail will occur. Settlement requirements for stock, options, futures contracts, forwards and fixed-income securities differ.

Fail is also used as a bank term when a bank is unable to pay its debt to other banks. The inability of one bank to pay its debt to other banks in interbank fund transfer systems, can potentially lead to a domino effect, causing several banks to become insolvent.

Further Reading

  • The capital asset pricing model (CAPM): the history of a failed revolutionary idea in finance? – onlinelibrary.wiley.com [PDF]
  • Why finance theory fails to survive contact with the real world: a fund manager perspective – www.sciencedirect.com [PDF]
  • Why interest‐free banking and finance movement failed in Pakistan – www.emerald.com [PDF]
  • The SIFIS:“Too Big to Fail” or “Too Connected To Fail”-An Analysis of China's Banking Sector [J] – en.cnki.com.cn [PDF]
  • An empirical comparison of published replication research in accounting, economics, finance, management, and marketing – www.sciencedirect.com [PDF]
  • Explaining settlement fails – papers.ssrn.com [PDF]
  • Moral hazard and Its Prevention in Too-big-to-fail of Financial Institutions [J] – en.cnki.com.cn [PDF]
Previous articleFibonacci Retracement
Next articleFed Model
rjonesx

RELATED ARTICLESMORE FROM AUTHOR

Oculus Gift Card

The Perfect Gift for Gamers – The Oculus Gift Card

walgreens Cash Checks

Does Walgreens Cash Checks In 2023? Complete Guide

How Many Nickels Make $2?

How Many Nickels Make $2? A Quick Guide

EDITOR PICKS

Obsolete Inventory

Should I invest in additional life coverage?

Quarter (Q1, Q2, Q3, Q4)

Per Stirpes vs Per Capita

Joint Supply

FAAMG Stocks

Latest

Personal Loans: What Are They and What Can They Be Used for?

Why You Need to Hire a Lawyer if You’re Looking for Compensation

Selling stocks in the fall: timing and tactics for a smart investment strategy

Reasons Business Owners Should Invest in Insurance

TU Experts Choose Forex Trading Best Broker In 2023

Yum China unveils new growth-oriented strategy, more ambitious financial targets at Investor Day event

  • A
  • B
  • C
  • D
  • E
  • F
  • G
  • H
  • I
  • J
  • K
  • L
  • M
  • N
  • O
  • P
  • Q
  • R
  • S
  • T
  • U
  • V
  • W
  • X
  • Y
  • Z
  • About
  • Accessibility
  • Privacy
  • Sitemap