HomeDefinitionsCompareDebt Letter of GuaranteeThe financial definition for Letter of Guarantee:A letter from a bank to a brokerage firm which states that a customer (who has written a call option) does indeed own the underlying stock and the bank will guarantee delivery if the call is assigned. Thus the call can be considered covered. Not all brokerage firms accept letters of guarantee. Also: letter issued to Option Clearing Corporation by member firms covering a guarantee of any trades made by one of its customers, (a trader or broker on the exchange floor). Similar MatchesFinancial guarantee insuranceFinancial guarantee insuranceInsurance created to cover losses from specified financial transactions. GuaranteeGuaranteeThe assumption of responsibility for payment of a debt or performance of some obligation if the liable party fails to perform to expectations. Guarantee FeeGuarantee FeeA sum paid by the importer to the guarantor, usually as a percentage per annum of the face value of the bills or notes being guaranteed. Further SuggestionsGuaranteed bondGuaranteed insurability Guaranteed insurance contract Guaranteed investment contract (GIC) Guaranteed Mortgage Certificates (GMC) Guaranteed renewable policy insurance Guaranteed replacement cost coverage insurance Click to compare definitions of Letter of Guarantee Click to view definitions beginning le |