We'll support you with decades of financial industry experience
A notarized form stating where a person resides (or where a deceased party resided). Known as Letters of Testamentary.
A written statement that attests to the fact that a shareholder is not in possession of his/her certificate due to loss or non-receipt. The affidavit should be notarized.
An amount usually representing the taxpayer's cost in acquiring an asset. It is used for a variety of tax purposes including computation of gain or loss on the sale or exchange of the asset and depreciation with respect to the asset.
A prolonged decline of stock prices usually occurring over a period of months or years. May also describe a general belief by many investors ('bears') that prices are in a falling pattern.
A person or organization that has any present or future interest, vested or contingent, in the assets of a trust.
A certificate of indebtedness to a corporation or government over a period of more than one year. (A debt of less than one year is called a 'note.')
Shares held in non-certificate form either by a broker 'street name', in a plan such as a Reinvestment or employee plan or directly registered on the books of the corporation in book entry form.
Broadridge Financial Solutions, Inc. is a US servicing company for the financial industry who work are in securities processing, clearing and investor communication.
A trend of rising stock prices or a pattern of growth within a period of months or years. May also describe a general sentiment of optimism by many investors ('bulls') stemming from economic and/or political conditions favorable to growth.
A statement by court or authorized party, that the copy is true and correct copy and is still in full force and effect.
Equity ownership in a corporation in the form of Common Stock. May be in the form of a physical certificate or book entry.
A dated document issued by the court naming an individual to act on behalf of an estate. Generally this is the document which names the Executor, Administrator, or Personal Representative.
Committee on Uniform Securities of Identification Procedures. Used to identify issuer and type of security issued. Is located on stock certificates and other forms.
Cash dividends declared on Common Stock are paid by corporations, usually quarterly, to shareowners of record on the declared record date. Shares directly registered on the books of the corporation are paid directly to shareholders while shares held through a broker are paid to the broker by the corporation.
Direct Registration System (DRS) is a method of recording shares of stock in book-entry form.
Deposit/Withdrawal at Custodian. A method of electronically transferring new shares or paper share certificates from the Depository Trust Company (DTC), which acts as a clearinghouse for settling trades in corporate and municipal securities.
EDGAR, the Electronic Data-Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, acceptance, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (the "SEC"). The database is freely available to the public via the Internet or FTP.
The turning over of property to the state of last known address when such property is considered abandoned. Different rules and regulations apply to the various states.
A bond, deed, or other document kept in the custody of a third party, taking effect only when a specified condition has been fulfilled. As your Escrow Agent, Transfer Online would act as a secure, trustworthy and neutral third party for you.
The buyer of a stock selling ex-dividend does not receive the dividend already declared, but not yet reaching the record date. 3 days prior to the record date.
An individual or institution nominated in a will and appointed by a court to settle the estate of an individual. If a woman is appointed, she may be called an executrix. In some states, such individual or institution may be called a personal representative.
To implement the right under which the holder of an option, warrant, or right is entitled to buy or sell the underlying security.
A person having a duty to act for another's benefit. A person or institution that manages money or property for another and who must exercise care in such management activity imposed by law or contract.
A person who establishes the trust. Also may be called a settlor or trustor.
Provided by a Financial Institution; a signature guarantee signifies that the person signing the document is who they claim to be, and that the financial institution backs that guarantee by a bond it has posted as a guarantor.
A person who has custodial rights and responsibilities for a minor or a person who is incapable of handling their own affairs. A Guardian as commonly known in the United States is Court Appointed.
A document issued by the state certifying that the estate tax has either been paid or has been waived by the state.
The deceased party had no will.
A trust which cannot be changed (modified) or canceled (revoked) once it is set up.
A form of registration, properly abbreviated as "JT TEN" on stock certificates, that means that all parties named on the certificate have an undivided interest in the shares represented by the certificate. Thus, if one of the tenants should die the entire value of the certificate becomes the property of the surviving tenants. (Identical to Joint Tenancy With Right of Survivorship.)
Transfer of securities which require special documents because they involve the settlement of estates of deceased shareholders, trust accounts, or corporation holdings.
A "Market Maker" is a firm that stands ready to buy and sell a particular stock on a regular and continuous basis at a publicly quoted price. You'll most often hear about Market Makers in the context of the Nasdaq or other "Over The Counter" (OTC) markets. Market Makers that stand ready to buy and sell stocks listed on an exchange, such as the New York Stock Exchange, are called "third Market Makers." Many OTC stocks have more than one market-maker. Market-makers generally must be ready to buy and sell at least 100 shares of a stock they make a market in. As a result, a large order from an investor may have to be filled by a number of market-makers at potentially different prices.
The risk that the stock market will go down ('bear market') rather than up ('bull market'). The only certainty of reducing market risk lies in long-term investing, as bear markets always eventually end.
A statement (stamp and signature) given by a financial institution such as a commercial bank, credit union, brokerage firm, etc., that are members of the Securities Transfer Association Medallion Program (STAMP), NY Stock Exchange Program or Stock Exchange Medallion Program (SEMP, MSP.) The Medallion Program is not a notarization.
A program developed by the Securities Transfer Association to meet the requirements of an SEC Rule which increases the number and type of financial institutions eligible to guarantee signatures. By Medallion Guaranteeing the stock to be sold, assigned or transferred, the financial institution is taking financial responsibility if the transfer is completed fraudulently. A Medallion guarantee may be obtained from a commercial bank, brokerage firm, credit union or savings and loans institutions that are members of the Medallion Stamp Program.
A fund operated by an Investment Company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities.
National Association of Securities Dealers Automated Quotations. This computerized system provides price quotations on securities traded over-the-counter.
Provided by a Notary Public; a notary seal signifies that the party signing the document has sworn that contents of the document are truthful and accurate.
The OTC Bulletin Board (OTCBB) is an electronic quotation system that displays real-time quotes, last-sale prices, and volume information for many Over-The-Counter securities that are not listed on The Nasdaq Stock Market or a national securities exchange. Brokers who subscribe to the system can use the OTCBB to look up prices or enter quotes for OTC securities. Although the National Association of Securities Dealers, Inc. oversees the OTCBB, the OTCBB is not part of The Nasdaq Stock Market. Under the OTCBB's eligibility rule, companies that want to have their securities quoted on the OTCBB must file current financial reports with the SEC or with their banking or insurance regulators.
The buying and selling of securities through a nationwide network of brokers and dealers. 'OTC' stocks are not listed on an exchange but are sold primarily through NASDAQ.
The "Pink Sheets", named for the color of paper they've historically been printed on, are daily listings of price quotes for companies that trade in the Over-The-Counter market (OTC market). "Market Makers", the brokers who commit to buying and selling the securities of OTC issuers, can use the Pink Sheets to publish bid and ask prices. A company named Pink Sheets LLC, formerly known as the National Quotation Bureau, publishes the Pink Sheets in both hard copy and electronic format. Pink Sheets LLC is not registered with the SEC as stock exchange, nor does the SEC regulate its activities. With the exception of a few foreign issuers, the companies quoted in the Pink Sheets tend to be extremely small and thinly traded. Most do not meet the minimum listing requirements for trading on a national exchange, such as the New York Stock Exchange or the Nasdaq Stock Market. And many of these companies do not file reports or audited financial statements with the SEC. It can be very difficult for investors to find reliable, unbiased information about companies quoted in the Pink Sheets. For all of these reasons, companies quoted in the Pink Sheets can be among the most risky investments. That's why you should take extra care before investing in a company quoted exclusively in the Pink Sheets.
A document by which one person gives another signing authority. A power of attorney is in effect only as long as the maker is alive. We will accept a photocopy of the original Power of Attorney that is Medallion guaranteed.
Issued after common stock has been issued, preferred stockholders receive dividends prior to common stockholders. Should a company go out of business, and its assets are liquidated, preferred stockholders are entitled to distributions ahead of common stockholders.
A press release is a written or recorded communication directed at members of the news media for the purpose of announcing something claimed as having news value. Typically, they are mailed, faxed, or e-mailed to assignment editors at newspapers, magazines, radio stations, television stations, and/or television networks. Commercial press-release distribution services are also used to distribute them.
Probate is the formal, court supervised process of turning a deceased party's assets over to his or her heirs.
A formal written offer to sell securities that sets forth the plan for a proposed business enterprise or the facts concerning an existing one (such as a mutual fund) that an investor needs to make an informed decision.
Proxy voting is a procedure for the delegation to the issuer's attorney(s) of the securityholders' power to vote in their absence at securityholder meetings. This may be accomplished by mailed paper proxy cards, upon which securityholders mark their votes and mail back to the transfer agent, or a proxy voting service provider may host online voting, where securityholders login to a secure website and mark their votes.
A person associated with a NASD member broker/dealer who acts as an account executive for clients. As such, the registered representative gives advice on which securities to buy and sell, and he collects a percentage of the commission income he generates as compensation. "Registered" means licensed with the NASD.
Securities held on the books of a corporation in the name(s) of the shareholder(s), as opposed to Street Name or another name other than the shareholder. Direct owners receive all corporate communications directly from a company.
Shareholders whose names actually appear on the records of the corporation from which the shares are issued. See also Street Name.
While an investor's mindset is usually to buy a stock first and then sell it later, short selling actually is just the opposite; sell now and then buy it back later. The short seller borrows the shares from a securities firm with the anticipation that they will decline in value. If the investor is correct, the shares can be bought back at a lower price and the investor realizes a gain. However, if the shares are bought back at a higher price, a loss will be realized.
A short squeeze results when the price of the stock rises and investors who short-sold the stock rush to buy it to cover their short position. As the price of the stock increases, more short sellers feel driven to cover their positions.
A notarized document that the heir completes. The form lists the names of all heirs and next of kin of the decedent and states that probate was not initiated for the decedent. It must also be noted in the affidavit that the estate does not exceed the small estate maximum for the state in which the person resided.
Form used to instruct the transfer of ownership of a security from the registered owner(s)s to a third party. Required to be completed in cases of registered book entry shares or where back of certificate is not used. All shareholder(s) signatures are required and it should also be Medallion Guaranteed.
Ownership of shares which are held for the benefit of the shareholder in a brokerage account, and are not reflected in the shareholder's name on the records of the corporation. See also Shareholders of Record.
Shareholders who hold their shares in their broker's name.
The number used to report dividends and other income. In the case of individuals it is the Social Security Number, in all other instances, it is the Employer Identification Number.
A form of registration, properly abbreviated as "TEN ENT", on stock certificates, which, like a joint tenancy, provides for undivided ownership of the property in question and for the right of survivorship. Unlike a joint tenancy, Tenancy by the Entireties is not subject to partition. Tenancy by the Entireties is not available in all states, and is only available to married couples.
A form of registration, properly abbreviated as "TEN COM" on stock certificates, in which ownership is divided among two or more parties. Tenancy in Common does not provide for the right of survivorship, so for example, if a stock certificate were shared equally by two tenants and one died, the surviving tenant would be entitled to 50% of the value, and the estate of the deceased tenant to the remaining 50% of the value.
The deceased party had a valid will.
A form of registration that allows shareholders to name on their certificate the party they would like to receive the shares at the time of their death. Unlike shares registered with a tenancy clause, a party named as beneficiary of TOD shares has no interest in nor are they an owner of the shares until the original owner dies.
A relationship established by agreement between a grantor and a trustee to manage assets or property for another's benefit.
A person or institution holding property in trust. The trustee manages and invests the assets and makes distributions according to the terms of the trust.