NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Settlement Process
Which document must a stock broker issue to a client for each trade, generally by the end of the next working day after the trade?
The broker must issue a contract note for each trade, normally by the end of the next working day. It records the trade details, price, quantity, brokerage and charges, and acts as the legal confirmation of the transaction with the client.
- AMargin statement
- BContract noteCorrect
- CDemat statement
- DAnnual return
Explanation
A contract note records the trade details including quantity, price, brokerage and charges, and must be issued to the client within the prescribed time, usually by the next working day. A margin statement, demat statement and annual return serve different purposes.
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