Mutilated Security

AAA

DEFINITION of 'Mutilated Security'

A stock or bond certificate on which the owner's details or other identifying information cannot be read. A mutilated security can be the result of damage, negligence, being printed incorrectly or other reasons, and must receive a guarantee of ownership from a third party to ensure there is no fraud.

INVESTOPEDIA EXPLAINS 'Mutilated Security'

This is simply a certificate that is damaged enough to be unreadable. To avoid fraud, this type of certificate cannot be transferred to the buyer unless a third party makes a legal promise that the certificate is legitimate. The guarantee of ownership comes from a transfer agent, a financial institution that maintains records of investors.

RELATED TERMS
  1. Registered Bond

    A bond whose owner is registered with the bond's issuer. The ...
  2. Stock Certificate

    The physical piece of paper representing ownership in a company. ...
  3. Transfer Agent

    A trust company, bank or similar financial institution assigned ...
  4. Transfer Procedures

    The procedure by which ownership of a stock moves from one party ...
  5. Custody-Only Trading

    A system in which shares must be registered to the holder by ...
  6. Registered Holder

    Shareholders who hold their shares directly with a company.
RELATED FAQS
  1. I lost my share certificate. Do I still own the stock?

    Regardless of whether a shareholder loses his or her stock certificate, that person still owns the shares. However, in order ...
  2. How do you get a hard copy of a stock certificate?

    Before online brokers and personally-directed accounts, holding a physical stock certificate was a necessity, as this was ...
  3. How does the ISIN numbering system work?

    The International Securities Identification Numbering (ISIN) system is an international standard set up by the International ...
Related Articles
  1. Investing Basics

    Old Stock Certificates: Lost Treasure Or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips and find out what they're worth.
  2. Investing

    Additional Paid-In Capital

    Additional paid-in capital is an account in the equity section of a balance sheet. It represents the additional amount paid for the company’s shares over the par value of the shares. Additional ...
  3. Investing

    Who are Stakeholders?

    “Stakeholder” is used in commerce to describe any party who has an interest in a business or enterprise. Traditionally, stakeholders in a corporation are shareholders, employees, customers and ...
  4. Investing Basics

    How a Stock Buyback Works: MasterCard

    Stock buyback refers to publicly traded companies buying back their shares from shareholders. This reduces the amount of outstanding shares in the market and typically, based on simple market ...
  5. Investing

    What's Share Capital?

    Share capital, also called equity financing, is the total amount of money and property a company has received for selling its shares to shareholders.
  6. Professionals

    What is a SWOT Analysis?

    SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. SWOT analysis is a management tool used to identify strategies for success. It may be used to guide individual thinking, group ...
  7. Economics

    Analyzing Warren Buffett's 2013 Famous Shareholder Letter

    Reading the chairman of Berkshire Hathaway's letters has been one of the best sources of investment education for value investors around the world.
  8. Mutual Funds & ETFs

    Revealed: America’s Best (And Worst) Airlines

    The folks PO'd enough to vent about it on Twitter, “Those #AmericanAirlines losers canceled my flight!” As it turns out, those tweets can be valuable.
  9. Investing Basics

    The Basics Of Outstanding Shares And The Float

    We go over different types of shares and what investors need to know about them.
  10. Investing

    How Your Vote Can Change Corporate Policy

    Shareholders are getting a bigger say in how companies are run. Find out how you can be heard.

You May Also Like

Hot Definitions
  1. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  2. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  3. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
  4. Investment Grade

    A rating that indicates that a municipal or corporate bond has a relatively low risk of default. Bond rating firms, such ...
  5. Fringe Benefits

    A collection of various benefits provided by an employer, which are exempt from taxation as long as certain conditions are ...
  6. Irrevocable Trust

    A trust that can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets ...
Trading Center