WHAT THE CONFIRMATION NOTICE INCLUDES

Although the format of confirmation notices may vary among different brokerages and investment firms, the basic elements of all notices are the same.

The first items you will probably see on your notice are several dates.  The trade date is the date your trade was executed.  After your trade is executed, your securities must then be delivered from seller to buyer.  The settlement date of your notice is the date specified for this delivery.  It is usually scheduled three business days after your trade date. Also on your confirmation notice, you will find the quantity of the shares you bought or sold, the security name and symbol, the price for which you bought or sold them, and the net amount (cost or earnings) of your trade.  If you are trading bonds, the bond's coupon rate and maturity will be listed.  Some notices will also include the place (usually an exchange) and method (type of order) of execution.  Execution is simply another way of saying the completion of your trade.

The notice will also list any commissions charged for performing the trade as well as any state taxes or fees (such as a Securities and Exchange Commission fee).  It will also let you know whether you owe any money to complete and settle the trade.

Each security also comes with an identification number called a CUSIP (Committee on Uniform Security Identification Procedures) number.  CUSIP numbers are used to speed up the process of settling your trade.

Your brokerage or investment firm also keeps you informed of your monthly or quarterly trading activity.  You will find out how they do this in the next tutorial section.