Class 12 Business Studies - Chapter Financial Markets NCERT Solutions | Name the document prepared in the proces

Welcome to the NCERT Solutions for Class 12th Business Studies - Chapter Financial Markets. This page offers a step-by-step solution to the specific question from Exercise 2, Question 7: name the document prepared in the process of onlin....
Question 7

Name the document prepared in the process of online trading of securities that is legally enforceable and helps to settle disputes/claims between the investor and the broker.

Answer

Once the trade has been executed, within 24 hours the broker issues a Contract Note. This note contains details of the number of shares bought or sold, the price, the date and time of deal, and the brokerage charges. This is an important document as it is legally enforceable and helps to settle disputes/claims between the investors and the broker. A unique Order Code number is assigned to each transaction by the stock exchange and is printed on the contract note.

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