Account 4
Definition
Formerly, a period during which dealings on the London Stock Exchange were made without immediate cash settlement. Up to the end of each account, transactions were recorded but no money changed hands. Settlement of all transactions made within an account was made 10 days after the account ended. The account system was abandoned in 1996.
Example
Example 1:
Just as Nigerian Stock Exchange transactions are settled within a defined period, the London Stock Exchange formerly operated on an account system where trades made throughout the period were only settled 10 days after it ended, a system abandoned in 1996.
Example 2:
A London stockbroker in the 1980s could buy and sell shares multiple times within an account period without any cash changing hands, only settling all outstanding transactions 10 days after the account closed.