Good Delivery Requirements
Chapters in this video
- 0:00 What good delivery means and the gauntlet framework
- 1:12 Stock certificate denominations: the rule of 100
- 3:23 Endorsement rules, stock powers, and joint ownership traps
- 5:41 Registered bonds versus bearer bonds and par value rules
- 7:03 Missing coupons on bearer bonds and mutilated certificates
- 8:15 Seller possession, Regulation SHO, and short sale locate
- 8:22 Rapid-fire exam recap
What this video covers
- The stock certificate denomination rule: multiples of 100, exact divisors of 100, or combinations totaling 100, and why a 150-share certificate always fails good delivery
- Proper endorsement of registered securities, including exact name matching, joint ownership signature requirements, and when a stock power is used instead of signing the certificate itself
- The role of the medallion signature guarantee in proving identity for certificate transfers
- Why certificates registered to a deceased owner are not good delivery without legal documentation such as letters testamentary or a court order
- Registered bonds versus bearer (coupon) bonds, including the $1,000 par value denomination rule and the $100,000 maximum for registered bonds
- Why bearer bonds require all unpaid coupons to be attached, and how missing even one coupon causes the entire bond to fail good delivery
- Mutilated certificates and the transfer agent's role in validation or replacement before delivery can be completed
- The seller possession requirement and how selling without possession triggers locate and borrow requirements under Regulation SHO
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