stock power

Thân thiện

The lawyer prepares a stock power for the client to sign.

Definition

Noun: A legal document, specifically a form of power of attorney, that authorizes the transfer of ownership of a registered stock or security from the current owner (the principal) to another party (the transferee or agent). It is used to facilitate the sale, gift, or other transfer of securities without the physical presence of the registered owner.

Usage

A stock power is a standalone document, often a detachable part of a stock certificate, that must be completed and signed to legally transfer the security. It grants authority to another party to act on the owner's behalf for the specific purpose of transferring the stock's title.

Examples

• Noun:
  • To sell the shares, she had to sign a stock power and mail it to her broker.
  • The stock power must be signed exactly as the owner's name appears on the stock certificate.
  • He used a stock power to gift the stock to his daughter.

Advanced Usage

• "Separate stock power": A stock power that is executed on a form separate from the actual stock certificate, often for security reasons when mailing documents.
  • For safety, the certificate was mailed under separate cover from the signed stock power.

Variants and Related Words

• Bond power: A similar legal document used to transfer ownership of registered bonds.
• Assignment separate from certificate: Another term for a stock power, emphasizing its function as a document separate from the security certificate.
• Power of attorney: The broader legal category; a stock power is a limited, specific type of power of attorney.

Synonyms

• Stock assignment
• Assignment of stock

Important Notes

• A stock power is specifically for transferring registered securities. It is not used for "bearer" securities.
• The signature on a stock power often requires a signature guarantee from a bank or broker to be valid, verifying the owner's identity.
• It is a critical document in securities transactions, as it provides the legal authority to change the name on the ownership records.

Học thuật

Noun

1. a power of attorney document to transfer ownership of a registered security from the owner to another party