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.

1. The role of brokers 2. What type of broker do you want? 3. Choosing a discretionary or advisory broker 4. Choosing an execution-only broker 5. Opening an account with a broker 6. Placing buy/sell orders by telephone 7. Placing buy/sell orders online 8. Normal market size 9. The spread 10. Contract notes 11. Settlement 12. Conclusion

• First Steps in Shares