Legal Definitions - confirmation slip

A confirmation slip is an official document that serves as a formal record and verification of a financial transaction involving securities. It is typically issued by a financial professional, such as a stockbroker or investment firm, to an investor to confirm the details of a recent purchase or sale of investment products like stocks, bonds, or mutual funds. This document ensures transparency by outlining key information about the transaction, providing a clear record for both the investor and the financial institution.

Here are some examples of how a confirmation slip is used:

• Stock Purchase: Imagine Mark decides to invest in the stock market. He instructs his brokerage firm to purchase 50 shares of "Global Energy Corp." A few days after the transaction is executed, Mark receives a confirmation slip from his broker. This slip details the exact date of the purchase, the number of shares acquired, the price per share, the total cost including any commissions, and the settlement date. This document officially verifies that his order was successfully processed according to his instructions.

• Bond Sale: Sarah holds a portfolio of government bonds and decides to sell a portion of them to fund a new project. She contacts her financial advisor, who then executes the sale. Shortly after the transaction is completed, Sarah receives a confirmation slip. This document confirms the sale, specifying the type and quantity of bonds sold, the selling price, the total proceeds she will receive, and any fees deducted. It provides her with a crucial record for her financial planning and tax documentation.

• Mutual Fund Investment: David wants to diversify his savings and decides to invest a lump sum into a specific mutual fund offered by his investment platform. After he initiates the investment and the funds are processed, David receives a confirmation slip. This slip verifies the amount he invested, the name of the mutual fund, the date of the transaction, and the number of units he acquired in the fund. It serves as official proof that his money was successfully allocated to his chosen investment.