confirmation Hear it!

confirmation definition - finance
  1. A trading document sent by a broker to a customer confirming that a trade has taken place and stating its terms.
  2. A letter sent by an auditor to the companyÂ’s customers asking them to verify the terms of their accounts receivable or payable transactions. A confirmation also may be sent to account holders asking them to verify their account balances. A positive confirmation asks that all of the appropriate information be confirmed. A negative confirmation requests a reply only if a difference is noted.
  3. In technical analysis, a situation in which one technical indicator confirms another technical indicator. The term can also mean that the requirements of a technical pattern have been met, which confirms the pattern and resulting trend.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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