Understanding Your Brokerage Account Statements
Understanding Your Brokerage Account Statements 1
How am I doing financially?
The best way to track your brokerage account activity and performance
is to carefully review your monthly/quarterly statements.
This document provides a detailed “snapshot” of the value of, and the
transactions that have occurred in, your account during the statement
period. They are mailed quarterly or monthly, and many firms provide
this information online, too.
Once you can interpret the information your statement provides,
you will find that checking your statement regularly is a convenient,
informative way to track your investments’ performance. And, you
will have greater confidence when speaking with your financial
professional about whether you are on course to meet your
What can my statement tell me?
Your brokerage account statement “keeps score” of your investments
and reports all transactions during the statement period. For example,
you can confirm how many shares of stock or mutual funds are held
in your account. You will also see a summary of the income produced
by each security, including dividends, interest, and capital gain
distributions. Your account statement will also tell you the market
value of securities you own – at the beginning and end of the period
covered – so you can decide whether to buy more, sell, or simply
hold your position.
With the help of your financial professional, checking your account
statement regularly should become as routine as balancing your
It’s easy to read
Although it may seem complicated at first glance, the typical account
statement is straightforward. In this guided tour, you will learn
step-by-step what information is provided in most statements, and
how to make that information a powerful tool in understanding
and managing your investment activity.
2 Understanding Your Brokerage Account Statements
A checklist follows to help you under