How shares are traded

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10. Contract notes

After a broker has executed your deal, his system will automatically generate and post a contract note. This will show:

name of the company
date of the trade
number of shares traded
whether you have bought or sold
price
commission charged
stamp duty (0.5% on purchases only & 1% on Irish stocks)
Panel of Takeovers and Mergers Levy (a flat charge on large trades only)
name of the account in which shares are held

Click here for an example of a contract note.

You should check your contract notes carefully, to make sure you got the price you thought you were getting, and file them so that you can cross-check against your broker statement.

Contract notes are also important when it comes to doing your end of year tax return, because they relate to the calculation of CGT. Depending on which broker you use, you may get quarterly and annual statements mirroring the individual transactions that have taken place on your account during the period in question.

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