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Finance: What is Good Delivery? 11 Views
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Description:
What is Good Delivery? Good delivery just means that nothing gets in the way of a security transfer after a transaction is made. It’s kind of a dated term because everything is done electronically now but when trades were made using paper, issues with delivery were more common.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Bonds
- Terms and Concepts / Investing
- Terms and Concepts / Managed Funds
- Terms and Concepts / Stocks
- Terms and Concepts / Trading
Transcript
- 00:00
Finance allah shmoop What is good delivery All right Well
- 00:07
here's bad delivery You have been there if a security
- 00:10
that's traded on an exchange meets the requirements toe permit
- 00:14
it to be transferred from seller to buyer While then
- 00:18
the transfer is said to be of good delivery When
Full Transcript
- 00:21
it happens legal transfer happens with no hiccups and well
- 00:24
life is good But on the other hand if a
- 00:26
share of stock is say restricted as in a one
- 00:29
forty four a type situation so that it cannot be
- 00:33
transferred Well then good delivery of this share cannot be
- 00:36
realized Recall that a one forty four a restriction is
- 00:39
a common provisions that insiders like early investors and management
- 00:43
and founders of a recently i po'd company fall under
- 00:47
that is for a six months and change after the
- 00:49
company was first taken public they are restricted from being
- 00:53
able to transact in there stock They couldn't sell it
- 00:55
And nobody could take good delivery of those shares Well
- 00:58
why would there be a provisioned for good delivery in
- 01:01
the first place Well you can imagine that before the
- 01:04
various regulatory bodies took hold in america there was all
- 01:07
kinds of room for fast talking city slickers to sell
- 01:10
no value Floor tiles of blue sky too ignorant farmers
- 01:14
who really didn't know what they were buying or that
- 01:17
various legal hoops had to be jumped through first So
- 01:20
good delivery actually became a hurdle that brokerages and their
- 01:23
clients had to pay attention to And well let's hope
- 01:26
they get it better Then this ups guy We're still 00:01:29.509 --> [endTime] angry about our glasses Yeah
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