Acceptor

  

Doesn't this sound like the name of a dinosaur with a massive, gaping mouth? Like, you have velociraptor and gigantosaur and...acceptor?

Maybe not.

Acceptor refers to the entity responsible for paying a bill, i.e., they accept that liability. The type of bill requiring an acceptor is usually a bill of exchange, and has two players, other than the acceptor: the drawor and the drawee. A drone building company pays Plastics R Us for blades based on a check drawn from their Wells Fargo account. The plastics company brings that check to the bank, which then accepts responsibility for wiring the money to the right place.

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Finance: What is Counterparty Risk?9 Views

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Finance a la shmoop what is counterparty risk?

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alright here's you the party and here's the guy you're contracting with to sell [Woman and man stood side by side]

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18 tons of bricks or buy a line of credit for your flower shop or sell a

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futures contract with the right to buy oil at 80 bucks a barrel for the next [Person signs contract]

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two years so you're the party and he's the counterparty and the yin and yang of

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the party and here's the risk yeah well the counterparty risk is just

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that the person you contracted with doesn't live up to their end of the

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bargain you pay them good money you sign a good contract all lawyered up and [Stack of money and contract appears]

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stuff and then they split like totally split disappeared sea men choose the

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bottom of the ocean maybe they went to Bora Bora

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maybe they got facial surgery in the Philippines you know they do that now [George Clooney in a surgical bed]

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well when that happens you will probably feel like crying and you should its your

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counterparty you can cry if you want to come on that was a good reference people [Man singing]

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