Acceptance Market (Finance) - Definition
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What is an Acceptance Market?
An "acceptance" is a financial instruction (generally time draft or bill of exchange) that is used to make payment in the international trade of goods.
An acceptance market is used in the international sale of goods. The buyer agrees to pay the seller at a future date by signing the acceptance document. The Seller then takes the acceptance and sells it to a financial institution. The financial institution will receive payment at the future date.
The scenario gives the buyer time to receive and sell the product to pay the acceptance. Selling the acceptance gives the seller additional liquidity at an earlier date.
Academic Research on Acceptance Market
- Recent developments in the bankers acceptance market, Jensen, F. H., & Parkinson, P. M. (1986). Fed. Res. Bull., 72, 1.
- The impact of financial futures on the cash market for Treasury bills, Simpson, W. G., & Ireland, T. C. (1985). Journal of Financial and Quantitative Analysis, 20(3), 371-379. The international acceptance market, Baster, A. S. J. (1937). The American Economic Review, 294-304.
- Correlates of credit card acceptance and usage in an advanced developing Middle Eastern country, Kaynak, E., Kucukemiroglu, O., & Ozmen, A. (1995). Journal of Services Marketing, 9(4), 52-63.
- Stock market bubbles? A reply, White, E. N. (1995). The Journal of Economic History, 55(3), 655-665.
- The relative efficiency of the gold and treasury bill futures markets, Monroe, M. A., & Cohn, R. A. (1986). Journal of Futures Markets, 6(3), 477-493.
- The commercial paper market, the fed, and the 2007-2009 financial crisis, Anderson, R. G., & Gascon, C. S. (2009). Federal Reserve Bank of St. Louis Review, 91(November/December 2009).
- Bankers' acceptance financing--the link to financing global market activity, Weissman, I. (1996). The CPA Journal, 66(8), 64.
- Determinants of the spread between treasury bill and private sector money market rates, Cook, T. (1979).
- The promise and performance of the Federal Reserve as lender of last resort 1914-1933, Bordo, M. D., & Wheelock, D. C. (2011). National Bureau of Economic Research.
- Are banks still special? New evidence on their role in the corporate capitalraising process, James, C., & Smith, D. C. (2000). Journal of Applied Corporate Finance, 13(1), 52-63.