A notice informing a customer of the cancellation of an erroneous trade that has been credited to his or her account by the broker.

Even stock brokers are subject to human error. When an error is made, set guidelines must be followed to rectify the situation.

For example, if a broker mistakenly over-purchases 100 shares of Cory's Tequila Corporation for your account, he or she must sell the 100 shares and bear any losses in his or her internal account. Each transaction is properly recorded and you will be sent statements showing the changes to your account. The procedure is done to ensure that the broker is not improperly trading for your account.

Investment dictionary. . 2012.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • cancellation — can·cel·la·tion also can·cel·a·tion n 1: the act or an instance of cancelling 2: a mark made to cancel something (as a check) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • cancellation — can‧cel‧la‧tion [ˌkænsəˈleɪʆn] noun [countable, uncountable] a decision or statement that a planned activity will not happen, or that an agreement will be ended: • Rail passengers are fed up with cancellations and delays. • Britain s aircraft… …   Financial and business terms

  • Cancellation — Can cel*la tion, n. [L. cancellatio: cf. F. cancellation.] 1. The act, process, or result of canceling; as, the cansellation of certain words in a contract, or of the contract itself. [1913 Webster] 2. (Math.) The operation of striking out common …   The Collaborative International Dictionary of English

  • cancellation — A postmark that contains the post office name, state, ZIP Code, and month, day, and year that the mail matter was canceled. (Also see hand stamped cancellation) …   Glossary of postal terms

  • Cancellation — (v. lat.), 1) das Durchstreichen einer Schrift mit zwei sich kreuzenden Strichen[627] bes. 2) die gerichtliche Vernichtung von Urkunden u. Wechseln etc …   Pierer's Universal-Lexikon

  • Cancellation — Cancellation, das Durchstreichen einer Schrift mit Kreuzstrichen, daher die gerichtliche Vernichtung einer Urkunde …   Herders Conversations-Lexikon

  • cancellation — [n] calling off; erasure abandoning, abandonment, abolishing, abolition, abrogation, annulment, canceling, deletion, dissolution, dissolving, elimination, invalidating, invalidation, nullification, overruling, quashing, recall, recalling, repeal …   New thesaurus

  • cancellation — or cancelation [kan΄sə lā′shən] n. 1. the act of canceling 2. something canceled 3. the mark or marks showing that something is canceled: Also cancelation …   English World dictionary

  • cancellation — (AmE also cancelation) noun ADJECTIVE ▪ last minute ▪ outright ▪ They opted for rescheduling rather than outright cancellation. ▪ flight, train (BrE) …   Collocations dictionary

  • cancellation — UK [ˌkænsəˈleɪʃ(ə)n] / US [ˌkæns(ə)lˈeɪʃ(ə)n] noun Word forms cancellation : singular cancellation plural cancellations 1) a) [countable/uncountable] a decision to stop something that has been arranged from taking place the cancellation of… …   English dictionary

  • cancellation — (kan sèl la sion) s. f. Action de canceller. ÉTYMOLOGIE    Canceller. SUPPLÉMENT AU DICTIONNAIRE    CANCELLATION. Ajoutez : •   M ayant ledit sieur président.... déclaré qu il était prêt de faire faire ladite cancellation, MALH. Lexique, éd. L.… …   Dictionnaire de la Langue Française d'Émile Littré

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”