Good Delivery

AAA

DEFINITION of 'Good Delivery'

Occurs when a security's transfer is unhindered by restrictions or other issues that would prevent its delivery to the buyer. Good delivery is determined behind the computer screen, where securities may have certificates that require endorsements and registration requirements that must be met in order for the buyer to receive the transfer.

INVESTOPEDIA EXPLAINS 'Good Delivery'

The presence of share transfer restrictions can hurt the possibility of a stock's good delivery. For example, stock issued to a company's executives may have certain restrictions that disallow sale outside the company without first having offered the shares for sale to existing shareholders. Rule 144 can allow for the sale of some restricted securities if they meet certain conditions.



RELATED TERMS
  1. Stock Certificate

    The physical piece of paper representing ownership in a company. ...
  2. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  3. Delivery

    The action by which an underlying commodity, security, cash value, ...
  4. Settlement Date

    1. The date by which an executed security trade must be settled. ...
  5. Settlement Price

    In derivatives markets, the price used for determining profit ...
  6. Dirty Stock

    Stock that is not granted a good delivery status due to missing ...
Related Articles
  1. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  2. A Look At Primary And Secondary Markets
    Investing Basics

    A Look At Primary And Secondary Markets

  3. Stock Safety: Top 3 Ways to Limit Your ...
    Options & Futures

    Stock Safety: Top 3 Ways to Limit Your ...

  4. Can You Buy Stock Insurace? 3 Strategies ...
    Options & Futures

    Can You Buy Stock Insurace? 3 Strategies ...

Hot Definitions
  1. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  2. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  3. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  6. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
Trading Center