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Simple English definitions for legal terms
bought note
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A quick definition of bought note:
A bought note is a piece of paper that shows someone bought something. It's like a receipt that a broker gives to the person who bought something through them. A note can also be a promise to pay someone back money. It's like when you borrow money from a friend and promise to pay them back later. A note is a way to make that promise official and written down. There are different types of notes, like ones that have to be paid all at once or ones that have small payments over time. Some notes are backed up by things like property or stocks, while others are not.A more thorough explanation:
A bought note is a written memorandum of a sale delivered to the buyer by the broker responsible for the sale. It is a type of promissory note, which is a written promise by one party to pay money to another party or to bearer.
For example, if a broker sells stocks to a buyer, they will provide a bought note to the buyer as proof of the sale. The bought note will include details such as the date of the sale, the price of the stocks, and any other relevant information.
Bought notes are important because they provide evidence of a transaction and can be used as proof of ownership. They are also useful for record-keeping purposes and can be used to track the history of a particular asset.