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Dirty Stock

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Dictionary Says

Definition of 'Dirty Stock'

Stock that is not granted a good delivery status due to missing or incorrect transfer documentation or endorsements. Dirty stock will usually disrupt the transaction process.
Investopedia Says

Investopedia explains 'Dirty Stock'

When stock is exchanged, various legal forms and endorsements are required to transfer the ownership title from the seller to the buyer. When the documentation is not properly handled, the stock will be labeled as dirty. A stock must attain good delivery status before the transfer is complete.

Related Definitions

  •

    Endorsement

    1. A legal term that refers to the signing of a document which allows for the legal transfer of a negotiable from one party to another.2. An attachment to a document that amends or adds ...
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  • Title

    The right to the ownership and possession of any item that may be legally recognized as belonging to someone or something. In its most basic sense, title is the recognition of ...
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  • Good Delivery

    When an exchange-traded security meets a set of requirements for being in proper form for transfer of title to the buyer.
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    • Stock

      A type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings. There are two main types of stock: common and ...
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    • Transaction

      An agreement between a buyer and a seller for the exchange of goods or services for payment.
      Read More »

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