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. Stock Certificate

    The physical piece of paper representing ownership in a company. ...
  2. Custody-Only Trading

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

    A bond whose owner is registered with the bond's issuer. The ...
  6. Registered Holder

    Shareholders who hold their shares directly with a company.
Related Articles
  1. I lost my share certificate. Do I still ...
    Investing

    I lost my share certificate. Do I still ...

  2. Old Stock Certificates: Lost Treasure ...
    Investing Basics

    Old Stock Certificates: Lost Treasure ...

  3. How do you get a hard copy of a stock ...
    Investing

    How do you get a hard copy of a stock ...

  4. How does the ISIN numbering system work? ...
    Options & Futures

    How does the ISIN numbering system work? ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

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

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. 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 ...
  5. Debit Spread

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

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center