Dirty Stock

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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 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 TERMS
  1. Title

    The right to the ownership and possession of any item that may ...
  2. Stock

    A type of security that signifies ownership in a corporation ...
  3. Endorsement

    1. A legal term that refers to the signing of a document which ...
  4. Transaction

    1. An agreement between a buyer and a seller to exchange goods, ...
  5. Good Delivery

    Occurs when a security's transfer is unhindered by restrictions ...
  6. Dividend

    A distribution of a portion of a company's earnings, decided ...
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