NISM Certifications · NISM-Series-VII: Securities Operations and Risk Management · Introduction to Securities Broking Operations
Which document must a stock broker issue to a client for trades executed, giving details such as trade time, price, quantity and brokerage?
The broker must issue a contract note to the client. It confirms the executed trades and shows details such as trade number, time, price, quantity and brokerage charged. A demat statement only shows holdings, while bank guarantees and margin letters do not serve as trade confirmation.
- AContract noteCorrect
- BDemat statement
- CBank guarantee
- DMargin letter
Explanation
The contract note is the legal document confirming the trades executed for a client, with trade numbers, time, price, quantity and brokerage. A demat statement shows securities holdings with the depository participant. A bank guarantee and margin letter are not trade confirmation documents.
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