Financial Transaction

A Financial Transaction is a economic transaction carried out between a buyer and a seller to trade a financial asset.

• Context:
  • It can typically involve Financial Transaction Asset Exchange through financial transaction payment mechanisms.
  • It can typically require Financial Transaction Documentation via financial transaction legal agreements.
  • It can typically generate Financial Transaction Records through financial transaction recording tasks.
  • It can typically affect Financial Transaction Status Change via financial transaction balance updates.
  • It can typically utilize Financial Transaction Payment Systems through financial transaction settlement processes.
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  • It can often trigger Financial Transaction Compliance Checks through financial transaction regulatory requirements.
  • It can often involve Financial Transaction Technology Systems via financial transaction processing platforms.
  • It can often require Financial Transaction Authentication through financial transaction verification processes.
  • It can often generate Financial Transaction Audit Trails via financial transaction tracking mechanisms.
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  • It can range from being a Personal Financial Transaction to being an Organizational Financial Transaction, depending on its financial transaction participant type.
  • It can range from being a Monetary Financial Transaction to being a Non-Monetary Financial Transaction, depending on its financial transaction asset nature.
  • It can range from being a Legitimate Financial Transaction to being a Fraudulent Financial Transaction, depending on its financial transaction legal validity.
  • It can range from being a Simple Financial Transaction to being a Complex Financial Transaction, depending on its financial transaction structural complexity.
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  • It can integrate with Financial Transaction Processing Systems for financial transaction automation.
  • It can connect to Financial Transaction Recording Systems for financial transaction documentation.
  • It can involve Financial Transaction Compliance Systems for financial transaction regulatory adherence.
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• Examples:
  • Financial Transaction Types, such as:
    • Financial Transaction Basic Types, such as:
      • Purchase Transaction for financial transaction goods acquisition.
      • Business Transaction for financial transaction commercial exchange.
      • Monetary Transaction for financial transaction currency exchange.
    • Financial Transaction Specialized Types, such as:
      • Arbitrage Transaction for financial transaction price differential exploitation.
      • Interest Payment for financial transaction debt service.
      • Financial Settlement for financial transaction obligation discharge.
  • Financial Transaction Demand-Based Types, such as:
    • Financial Transaction Call Types, such as:
      • Margin Call for financial transaction collateral demand.
      • Collateral Call for financial transaction security requirement.
      • Capital Call for financial transaction investor contribution.
      • Credit Facility Draw for financial transaction credit utilization.
  • Financial Transaction Technology Contexts, such as:
    • Financial Transaction Blockchain Implementations, such as:
      • Blockchain Transaction for financial transaction distributed ledger.
      • Blockchain Block containing financial transaction cryptographic records.
    • Financial Transaction Processing Systems, such as:
      • Online Transaction Processing (OLTP) System for financial transaction real-time processing.
      • Automated Financial Trading System for financial transaction algorithmic execution.
  • Financial Transaction Recording Contexts, such as:
    • Financial Transaction Documentation Types, such as:
      • Financial Transaction Record for financial transaction permanent documentation.
      • Financial Transaction Entry for financial transaction bookkeeping record.
      • Bookkeeping Journal Entry Record for financial transaction accounting documentation.
    • Financial Transaction Data Managements, such as:
      • Financial Transaction Recording Task for financial transaction data capture.
      • GL Chart String for financial transaction account identification.
      • Chart of Accounts (COA) Dataset for financial transaction categorization.
  • Financial Transaction Legal Contexts, such as:
    • Financial Transaction Compliance Types, such as:
      • Fraudulent Financial Transaction involving financial transaction illegal activity.
      • Financial Transaction Tax for financial transaction government levy.
    • Financial Transaction Contract Contexts, such as:
      • Contract Review Policy Rule governing financial transaction agreement review.
      • Financial Contract Fallback Rate (FC-FBR) for financial transaction rate determination.
  • Financial Transaction Industry Contexts, such as:
    • Financial Transaction Service Providers, such as:
      • Payment System for financial transaction fund transfer.
      • SWIFT for financial transaction international messaging.
      • Financial Service Company providing financial transaction intermediation.
    • Financial Transaction Professional Contexts, such as:
      • Transactional Legal Professional handling financial transaction legal matters.
      • Authorized Signatory with financial transaction approval authority.
  • ...
• Counter-Examples:
  • Webpage Pageview, which involves financial transaction data access rather than financial transaction asset exchange.
  • Depreciation Note, which involves financial transaction accounting adjustment rather than financial transaction actual trade.
  • Economic Relationship, which involves financial transaction business connection rather than financial transaction specific exchange.
• See: Economic Market, Contract, Asset, Payment, Good (Economics), Service (Economics), Financial System, Economic Transaction.

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References

2021

• (Wikipedia, 2021) ⇒ https://en.wikipedia.org/wiki/Financial_transaction Retrieved:2021-5-13.
  • A financial transaction is an agreement, or communication, carried out between a buyer and a seller to exchange an asset for payment.

    It involves a change in the status of the finances of two or more businesses or individuals. The buyer and seller are separate entities or objects, often involving the exchange of items of value, such as information, goods, services, and money. It is still a transaction if the goods are exchanged at one time, and the money at another. This is known as a two-part transaction: part one is giving the money, part two is receiving the goods.A financial transaction always involves one or more financial asset. Either buyer or seller can initiates such a transaction, hence one is the originator/initiator and the other is the responder. From liquidity point of view, one is the liquidity provider, the other party is the liquidity consumer.

    The liquidity provider is also called offer and the liquidity consumer is also called taker. While bidder and asker are much more confusing. Some people use both bid & ask for liquidity provision, while some other people use offer & ask for liquidity provision.

2015

• (Wikipedia, 2015) ⇒ http://en.wikipedia.org/wiki/financial_transaction Retrieved:2015-12-28.
  • A financial transaction is an agreement, communication, or movement carried out between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals. The buyer and seller are separate entities or objects, often involving the exchange of items of value, such as information, goods, services, and money. It is still a transaction if the goods are exchanged at one time, and the money at another. This is known as a two-part transaction: part one is giving the money, part two is receiving the goods.

2014

• http://www.investopedia.com/terms/d/double-entry.asp
  • QUOTE: Double entry accounting is based on the fact that every financial transaction has equal and opposite effects in at least two different accounts. … In the double entry system, transactions are recorded in terms of debits and credits.
• http://www.businessdictionary.com/definition/financial-transaction.html
  • QUOTE: Event which involves money or payment, such as the act of depositing money into a bank account, borrowing money from a lender, or buying or selling goods or property.
• http://www.investopedia.com/terms/t/transaction.asp
  • QUOTE:
    1. An agreement between a buyer and a seller to exchange goods, services or financial instruments.

       Here are some examples of activities you engage in that would be considered transactions:

    • • Buying or selling a stock
      • Buying a cup of coffee
      • Selling your freelance services
      • Buying or selling a house
    1. In accounting, the events that affect the finances of a business and must be recorded on the books. Transactions are recorded in what are known as “journal entries." Each entry describes a single transaction and states its date and amount.
    • • An accounting transaction will be recorded differently if the company uses accrual accounting rather than cash accounting. Accrual accounting records transactions when revenues or expenses are realized or incurred, while cash accounting records transactions when the business actually spends or receives money.

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