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free on board definition - finance
A term used in the transportation industry to describe a transaction in which the seller provides a commodity at an agreed unit price at a specified loading point during a certain time period. The buyer has to arrange for transportation and insurance from that specified loading point.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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