Joseph Stone Capital Insights: Reading Trade Confirmations and Account Statements

Two documents let investors check what has happened in an account. A trade confirmation is sent after a transaction and generally shows the security, trade and settlement dates, quantity, price, whether the firm acted as agent or principal, and any commission or mark-up or mark-down where applicable (SEC Rule 10b-10). An account statement summarizes positions, balances, activity, and fees over a period. Under FINRA Rule 2231, firms must send account statements at least once each calendar quarter, and many firms send them monthly when there has been activity in the account. Reviewing both regularly allows an investor to compare each transaction with their own records and with the instructions given. Investors should also note which values on a statement are market prices and which are estimates, since the values of thinly traded or private holdings may be less reliable than exchange prices.

Disclosure: Educational content only; not an offer, recommendation or solicitation to buy or sell any security. Investing involves risk, including loss of principal. Joseph Stone Capital, LLC, member FINRA/SIPC, 585 Stewart Avenue, Suite L60C, Garden City, NY 11530.