Can someone explain what fair trade is?

Can someone explain the life of a trade?

• In the context of an investment manager, can someone explain what happens internally for a trade? I.e. Once it gets executed, how does a company process the trade? Lets assume that there is a fund administrator that does the official books and records of a fund. Thanks!

• Answer:

  Not sure exactly what your question is asking. If you mean how it this trade recorded in the books of the fund, this would depend on whether it is a buy or a sell trade. Normal accounting proceedures would be followed. If it was a buy trade the Share Portfolio account would be debited and the Bank account credited for the cost of that purchase. If it were for a sell trade the Share Portfolio account would be credited and the Bank account debited for the proceeds of the trade.