Security

Fungible, negotiable financial instrument that represents some type of financial value, usually in the form of a stock, bond, or option, an obligation of an issuer or a share, participation or interest in an enterprise • Uncertified – not represented by a certificate o If want to transfer an uncertified certificate security you must register the purchaser as the owner • Certificated – represented by a certificate o Bearer form – security not registered in the issuing corporations books and is payable to the person possessing the stock or bond – person bearing the form has ownership o Registered from – security whose owner is kept on file with the issuer • If transferring a security that is certificated and registered must indorse and deliver the certificate to the transferee o If transferring a certificated security, requires both the endorsement and delivery of the certificate by its holder to the transferee but no registration of a stock transfer on the stock transfer books of the corporation is necessary o Delivery of a certificated security occurs when the purchaser acquires possession of the security certificate or another person, other than a securities intermediary, either acquires possession of the certification on behalf/or securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if the certificate is in registered form and is registered in the name of the purchaser