Legal Definitions - bought note

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.