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Confirmation
ConfirmationThe written statement that follows any "trade" in the securities markets. Confirmation is issued immediately after a trade is executed, spelling out settlement date, terms, commission, etc. RELATED TERMS-------------------------------------- Statement A document listing amounts of money owing or owed. Securities Saleable papers, traded on stock exchanges, that yield an income (dividend, interest, etc.). Confirmation The written statement that follows any "trade" in the securities markets. Confirmation is issued immediately after a trade is executed, spelling out settlement date, terms, commission, etc. Trade To buy and sell; buying and selling. Settlement When payment is made for a trade. Commission The fee paid to a broker to execute a trade, based on number of shares, bonds, options, and/or their dollar value. In 1975, deregulation led to the establishment of discount brokers, who charge lower commissions than full service brokers. SIMILAR TERMS-------------------------------------- Confidence indicator A measure of investors' faith in the economy and the securities market. A low or deteriorating level of confidence is considered by many technical analysts as a bearish sign. Confidence level In risk analysis, the degree of assurance that a specified failure rate is not exceeded. Confirmed Letter of Credit A letter of credit which a bank other than the bank that opened it agrees to honor as though they had themselves issued it. Confirming bank The bank which has confirmed a letter of credit opened by another bank. Conforming loans Mortgage loans that meet the qualifications of Freddie Mac or Fannie Mae, which are bought from lenders and issued as pass-through securities. PREVIOUS AND NEXT TERMS-------------------------------------- Conditional call options A protective guarantee that, in the event a high yield bond is called, the issuing corporation will replace the bond with a noncallable bond of the same life and terms as the bond that is being called. Conditional sales contracts Similar to equipment trust certificates, except that the lender is either the equipment manufacturer or a bank or finance company to which the manufacturer has sold the conditional sales contract. Conduit theory A theory that because investment companies are merely conduits for capital gains, dividends, and interest, which are in fact passed through to shareholders, the investment company should not be taxed at the corporate level. Confidence indicator A measure of investors' faith in the economy and the securities market. A low or deteriorating level of confidence is considered by many technical analysts as a bearish sign. Confidence level In risk analysis, the degree of assurance that a specified failure rate is not exceeded. Confirmation Confirmed Letter of Credit A letter of credit which a bank other than the bank that opened it agrees to honor as though they had themselves issued it. Confirming bank The bank which has confirmed a letter of credit opened by another bank. Conforming loans Mortgage loans that meet the qualifications of Freddie Mac or Fannie Mae, which are bought from lenders and issued as pass-through securities. Conglomerate A firm engaged in two or more unrelated businesses. Conglomerate merger A merger involving two or more firms that are in unrelated businesses. We thank you for using the Financial Dictionary to search for Confirmation. If you have a better definition for Confirmation than the one presented here, please let us know by making use of the suggest a term option. This definition of Confirmation may be disputed by other professionals. Our attempt is to provide easy definitions on Confirmation and any other medical topic for the public at large.
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