Cyclopedia of Commerce, Accountancy, Business Administration, v. 05 (of 10)American School of Correspondence
General
Cyclopedia of Commerce, Accountancy, Business Administration, v. 05 (of 10)
American School of Correspondence
Accounting; Business; Commerce
The minimum rates allowed upon the above transactions made for
the account of members of the board are one-half of the foregoing
minimum rates.
BOOKS AND FORMS USED
=18.= There are a number of ordinary forms, such as checks, drafts,
receipts, requisitions, etc., that are common with most lines of
business and used in the brokerage business, which will not be necessary
to reproduce. Most brokers have all such forms printed or lithographed
for their especial use with their name and address prominently displayed
thereon.
ORDER BLANK
[Illustration:
Fig. 2. Telegraphic Buying and Selling Orders
]
=19.= The first form of importance in connection with the accounting
department of a brokerage firm is the _order_ of the customer. This must
invariably be in written form with the signature of the customer and the
order must be expressed in the plainest terms so that there is no
possibility of misconstruction. As these orders are frequently received
by wire, or often dispatched by wire to New York or other branch office
for execution, blanks for the purpose, as shown in Fig. 2, are furnished
to customers, those used for buying orders being printed in black and
those used for selling orders being printed in red. These orders are
made out by the purchaser or his authorized agent and should not only
show the date of the order but also the time of the day it was given,
which is frequently of great importance in an active market. Whatever
margin is required by the broker upon the deal must be deposited by the
client at the time the order is given, as without this protection, the
broker will not proceed to execute the order. It is sometimes the custom
for brokers to accept collateral covering a certain amount of margin, in
which case the broker gives the customer a receipt in due form, holding
the collateral as trustee until settlement of account. All orders are
executed at the earliest possible moment after their receipt. Legitimate
brokers are members of the board of trade often in various cities and
have their representatives on the floor, during the business hours of
the board, to buy or sell as ordered.
[Illustration:
Fig. 3. Credit Slip Given to Customer by Broker
]
DEBIT AND CREDIT SLIP
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