A contract note has relevance in the trading world. If you are involved in any practice that involves trading, you should know about the contract note meaning and how you should read it. A contract note is of prime importance as it confirms the entire information of the trades executed on a specific date.
What is a Contract Note?
A contract note is an account of the total trades made on a particular day and acts as legal /official proof of transactions in offline or online trading. When you define contract note, you mean it to have the following parts:
What Purpose Does a Contract Note Serve?
What is a contract note in stock market terms? If you know the purpose for which a contract note is generated, you will understand its importance better. The contract note serves a purpose for the reasons mentioned below:
What is Contract Note for Shares?
Contract notes are generated for the transactions involving trading in stocks and shares. When you read a contract note, you will discover a number of columns that exhibit the finer details of the trades executed on a specific date. There will be a list of columns and these will be numbered. The following are the key sections of an actual contract note when securities/shares are traded:
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