ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Stocks Videos 415 videos
What is covariance? Covariance is the comparison of how assets move in the markets. Positive covariance is when assets move in tandem, such as when...
Rights offerings are essentially hostile takeover defenses. Unfortunately, they're not as cool as swords and shields.
Finance: What is Good Delivery? 11 Views
Share It!
Description:
What is Good Delivery? Good delivery just means that nothing gets in the way of a security transfer after a transaction is made. It’s kind of a dated term because everything is done electronically now but when trades were made using paper, issues with delivery were more common.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Bonds
- Terms and Concepts / Investing
- Terms and Concepts / Managed Funds
- Terms and Concepts / Stocks
- Terms and Concepts / Trading
Transcript
- 00:00
Finance allah shmoop What is good delivery All right Well
- 00:07
here's bad delivery You have been there if a security
- 00:10
that's traded on an exchange meets the requirements toe permit
- 00:14
it to be transferred from seller to buyer While then
- 00:18
the transfer is said to be of good delivery When
Full Transcript
- 00:21
it happens legal transfer happens with no hiccups and well
- 00:24
life is good But on the other hand if a
- 00:26
share of stock is say restricted as in a one
- 00:29
forty four a type situation so that it cannot be
- 00:33
transferred Well then good delivery of this share cannot be
- 00:36
realized Recall that a one forty four a restriction is
- 00:39
a common provisions that insiders like early investors and management
- 00:43
and founders of a recently i po'd company fall under
- 00:47
that is for a six months and change after the
- 00:49
company was first taken public they are restricted from being
- 00:53
able to transact in there stock They couldn't sell it
- 00:55
And nobody could take good delivery of those shares Well
- 00:58
why would there be a provisioned for good delivery in
- 01:01
the first place Well you can imagine that before the
- 01:04
various regulatory bodies took hold in america there was all
- 01:07
kinds of room for fast talking city slickers to sell
- 01:10
no value Floor tiles of blue sky too ignorant farmers
- 01:14
who really didn't know what they were buying or that
- 01:17
various legal hoops had to be jumped through first So
- 01:20
good delivery actually became a hurdle that brokerages and their
- 01:23
clients had to pay attention to And well let's hope
- 01:26
they get it better Then this ups guy We're still 00:01:29.509 --> [endTime] angry about our glasses Yeah
Related Videos
GED Social Studies 1.1 Civics and Government
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...