Gujarat BoardEnglish MediumSTD 12 CommerceOCMFINANCIAL MARKET3 Marks
Question
What is contract note? Which details it contains?
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Answer
Contract note:
Once the broker further places the order received from the investor, he prepares a contract note for the investor.
Contract note is a confirmation of the day on which transaction took place.
Generally, the broker sends contract note to the customer within $24$ hours after transaction takes place.
The contract note contains details such as name of the security traded, quantity, total amount of transaction, order number, brokerage, taxes applicable, etc. Thus, contract note is a summary as well as agreement about the traded securities.
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