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.

BREAKING DOWN '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.



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