Contract Note
A contract note is a document issued by a broker or financial institution to a customer that outlines the details of a financial transaction. It is a legally binding document that outlines the terms of the transaction, including the type of security, the price, the quantity, and the date of the transaction. The contract note also serves as a receipt for the transaction and is used to settle the transaction between the two parties.
History of Contract Note
The concept of a contract note dates back to the early days of the stock market, when transactions were conducted in person and the details of the transaction were written down on a piece of paper. This paper was then signed by both parties and served as a legally binding document. As the stock market evolved, so did the contract note, and it eventually became a standardized document that was issued by brokers and financial institutions.
Comparison Table
| Type of Security | Price | Quantity | Date of Transaction |
|---|---|---|---|
| Stock | $50 | 100 shares | June 1, 2020 |
| Bond | $100 | 10 bonds | June 2, 2020 |
Summary
A contract note is a document issued by a broker or financial institution to a customer that outlines the details of a financial transaction. It is a legally binding document that outlines the terms of the transaction, including the type of security, the price, the quantity, and the date of the transaction. The contract note also serves as a receipt for the transaction and is used to settle the transaction between the two parties. For more information about contract notes, you can visit websites such as Investopedia, The Balance, and the SEC website.
See Also
- Brokerage Statement
- Trade Confirmation
- Margin Account
- Settlement Date
- Clearing House
- Securities Exchange
- Stock Exchange
- Financial Market
- Securities Trading
- Investment Banking
