Legal Definitions - sold note

A sold note is a formal document, typically issued by a broker, agent, or auction house to their client (the seller), that serves as a written confirmation of a sale transaction. It provides a detailed record of the sale, including information such as the specific items or assets sold, the quantity, the price achieved, any commissions or fees deducted, and the net amount due to the seller. Essentially, it acts as official proof and a detailed record that the sale has been successfully executed on the client's behalf.

• Example 1: Stock Market Transaction

  Imagine an individual, Ms. Chen, instructs her stockbroker to sell 200 shares of ABC Corp. stock. Once the broker successfully executes the sale on the stock exchange, they will send Ms. Chen a sold note. This document will confirm that the 200 shares were indeed sold, specifying the exact sale price per share, the total proceeds from the sale, and any brokerage fees or taxes deducted. This note provides Ms. Chen with a clear and official record of the transaction for her financial records and tax purposes.

• Example 2: Commodity Futures Sale

  Consider a large agricultural cooperative that uses a commodities broker to sell a futures contract for 5,000 bushels of wheat. After the broker successfully finds a buyer and executes the sale on the commodities exchange, they will issue a sold note to the cooperative. This note will detail the specific futures contract sold, the price per bushel achieved, the total value of the sale, and any commissions charged by the broker. It serves as the cooperative's official confirmation that their selling order was fulfilled and provides all the necessary financial details.

• Example 3: Art Auction

  Suppose a private collector, Mr. Davies, consigns a valuable antique sculpture to a renowned art auction house for sale. When the sculpture is successfully auctioned off to the highest bidder, the auction house will provide Mr. Davies with a sold note. This note will confirm the sale of the specific artwork, stating the final hammer price, any buyer's premium (if it affects the seller's net), the auction house's commission, and the net amount Mr. Davies can expect to receive. It acts as the official documentation of the sale for both parties.