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What is the method of accounting for securities where the transcation are recorded on the date the securities settle by delivery or receipt of the securities and the payment of cash known as?
The method of accounting for securities where transactions are recorded on the settlement date, which is when the securities are delivered or received and payment is made, is known as the "settlement date accounting." This approach contrasts with trade date accounting, where transactions are recorded on the date the trade is executed, regardless of when the actual transfer of securities and cash occurs. Settlement date accounting provides a clearer picture of actual cash flow and asset ownership at the time of reporting.
What is swift message mt 540?
SWIFT MT 540 is a message type used in the SWIFT network for securities settlement instructions. It is specifically designed for the settlement of transactions involving the transfer of securities, providing details about the trade, the parties involved, and the settlement instructions. This message is essential for ensuring accurate and efficient processing of securities exchanges between financial institutions.
What is the clearing firm number for Bank of America Merrill Edge accounts?
The clearing firm number for Bank of America Merrill Edge accounts is 519. This number is used to identify the firm in various financial transactions and is important for activities such as trade settlement and recordkeeping.
What is scarto tax?
Scarto Tax Explanation- As a generale rule, the rate applied as Substitute tax on Italian Bonds is 12.50% and will be applied if the involved safekeeping account is setup as taxable, i.e. is not covered by proper fiscal documentation allowing relevant tax exemption.Just a brief explanation about how Italian substitute tax works:Taxable clients buying/selling Italian bonds traded on the gross market basis are debited/credited as follows:RECEIPT AGAINST PAYMENT/ RECEIPT FREE: client is Credited with the amount of substitute tax on interests accrued from the previous coupon date of involved security until the settlement date of the trade (and on possible issue discount, i.e. Scarto ).DELIVERY AGAINST PAYMENT/DELIVERY FREE: client is Debited with the amount of substitute tax on interests accrued from the previous coupon date of involved security until the settlement date of the trade (and on possible issue discount ).ON COUPON DATE CLIENT client is debited with the amount of tax related to the whole period (from the previous coupon payment).As a consequence, in case of a trade, just as an example:Period interest rate/days of period(from previous coup. paym to following coup paym)*days from previous coup. paym to settl date = rate of tradeNV*rate of trade%*12.50% = Substitute tax on interestsThe application of the substitute tax for BOT (a particular kind of Governmemnt zero coupon bond) works instead as follows:RECEIVE AGAINST PAYMENT/RECEIVE FREE: client is debited with the amount of the substitute tax on interests accrued from the settlement date of the trade until the maturity date of involved bond.DELIVER AGAINST PAYMENT/DELIVER FREE: client is credited with the amount of the substitute tax on interests accrued from the settlement date of the trade until the maturity date of involved bond.As a consequence, in case of a trade, just as an example:Redemption price-issue price/life of involved bond*days from settl date to maturity date = rate of tradeNV*rate of trade%*12.50% = Substitute tax on interestsJust for your info, "Scarto" is the Italian for "issue discount": if the specific involved bond had a redemption price higher than issue price, an additional piece of 12.50% taxation would be applied on this percentual difference on trades and redemptions.As a consequence, in case of a trade, just as an example and as a general rule:Redemption price-issue price/life of involved bond*days from issue date to settl date = trade issue discount (i.e. Scarto) rateNV*Scarto rate of trade%*12.50% = Substitute tax on ScartoSuch rules can be applied to any kind of bond transaction, independently from the involved kind of trade: no matter if it is free of paym or against paym.
What are the badges of trade?
Badges of trade are the circumstances in which a trade can take place. This is important in accounting because of the differences in taxation with non-trade transactions.
How did goegraphy affect trade and settlement there?
it affect the trade and settlement because people had to go to the Mediterranean Sea
What was the French more interested in settlement or trade?
The real answer is trade
What is the typical trade settlement time for transactions made through Schwab?
The typical trade settlement time for transactions made through Schwab is two business days after the trade date.
Which organization is charged with settlement of international trade disputes?
World Trade Organisation
What is Average settlement period for trade receivable?
Average settlement period for trade receivables = Average inventory held divided by cost of sales (times 365).
What are the advantages of trading with a trading settlement as compared to just doing a two-way trade?
When you trade at the settlement, You can put on tremendous size and be filled without moving the market.
Is stock owned on settlement date or trade date?
Stock is owned on trade date to keep the accruals principle, since the actual settlement date can be much later.
What was the main source of income for the Jamestown settlement?
Fur Trade.
What is trading settlement?
A community where people come to trade goods.
How did the geography of West Africa influence settlement and trade?
A lot
What allowed a company to trade and build settlement in Americas?
Charter
How did the Portuguese settlement of Brazil contribute to the development of the Atlantic slave trade?
Increased the volume of trade in the Atlantic.
