This term commonly defines the process of paying the money or funds paid, consumed, or disbursed, as one’s share or winning. When you talk about the pay-out, it is always connected with a big amount of money that is paid to some customers/merchants/corporations. For instance, funds which are paid by the underwriter to the corporation. It is also used to define if something comes out from the stock market.

In finance, there is also a term payout of securities which means the process when the shares which the person wants to acquire are accepted from the clearing corporation. After that, the shares are relocated to the broker’s account. The day during which the exchange conducts payment or delivery of securities to the broker is called the payout day.

Some examples of the term:

The corporation has to pay-out 10 000 of dollars to the underwriter this month.

It will take a couple of years for your investments to pay-out.