cancellation

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noun can·cel·la·tion \ ˌkan(t)-sə-ˈlā-shən \
variants: or less commonly cancelation
Updated on: 26 Jul 2017

Definition of cancellation

1 :the act or an instance of canceling
  • The cancellation of the game was due to bad weather.
2 :something (such as a hotel room or a ticket) made available by the canceling of an arrangement
  • was lucky to get a cancellation for the trip to Chicago
3 :a mark made to cancel something (such as a postage stamp)

Examples of cancellation in a Sentence

  1. The storm caused delays and flight cancellations.

  2. Notice of cancellation should be given 30 days in advance.

  3. There is a fee for cancellation.

  4. Cancellations increased when rates doubled.

Recent Examples of cancellation from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'cancellation.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of cancellation


Financial Definition of CANCELLATION

cancellation

What It Is

In the finance world, a cancellation is a notice informing a broker that a trade was made incorrectly. In the insurance world, a cancellation occurs when a policyholder stops paying the premium on an insurance policy and/or the insurance policy is no longer effective.

How It Works

Let's say Jane Smith calls her broker, John Doe, and tells him to buy 1,000 shares of Company XYZ. John puts the trade in, but gets a cancellation telling him that the floor accidentally bought 1,000 shares of Company X instead. John quickly puts in a new trade for Jane and then calls and tells her what happened. Because the price of Company XYZ rose about $0.25 before Jane could actually get her shares, John offers to make her whole on the trade.

In another example, let's say Peter Walker has a term life insurance policy that costs him $100 a month. He loses his job and can't afford to pay the premium anymore. In turn, the insurance company cancels the policy and Peter no longer has life insurance.

Why It Matters

Computerized trading has vastly improved the accuracy of trading in developed markets, but occasionally somebody types the wrong ticker symbol or transposes a number, causing a cancellation. Cancellations can be a sneaky way of covering up wrongdoing in an account, so they involve a considerable amount of paperwork and verification.

In insurance, cancellations may relieve a consumer of monthly premium payments, but they can also expose the consumer to considerable risk. In Peter's case, a lack of life insurance might mean that if he dies now, his children may have to sell his assets just to pay for his funeral and estate taxes if they are no longer the beneficiaries of his life insurance policy.


CANCELLATION Defined for English Language Learners

cancellation

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noun

Definition of cancellation for English Language Learners

  • : a decision to stop doing or planning to do something : the act of canceling something (such as a game, performance, etc.)

  • : the act of causing something to end or no longer produce a certain effect : a decision to stop something from being effective or valid


CANCELLATION Defined for Kids

cancellation

play
noun can·cel·la·tion \ ˌkan-sə-ˈlā-shən \

Definition of cancellation for Students

1 :an act of causing something to end or no longer be in effect
  • cancellation of a game
2 :a mark that makes something impossible to use again
  • the cancellation on a postage stamp

Law Dictionary

cancellation

noun can·cel·la·tion
variants: also cancelation

legal Definition of cancellation

1 :the act or an instance of cancelling
2 :a mark made to cancel something (as a check)


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