Definition of Lost or stolen securities

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TeachMeFinance.com - explain Lost or stolen securities




historic definition...

Lost or stolen securities -- A coupon bond payable to bearer or a stock certificate assigned in blank is good in the hands of an innocent and bona fide holder who acquires it by honest purchase at a fair market price without knowledge that it was fraudulently obtained by any previous holder even though it mav have been lost bv or stolen from its owner. The recovery of a lost or stolen bond or stock certificate can rarely be accomplished unless it is found in the hands of the finder or of the thief or his accomplice or some person who has obtained possession of it by fraud or under circumstances which will convict him of knowledge or suspicion of fraud on the part of the one from whom he received it. The fact that a lost or stolen bond or stock certificate has been advertised by its number does not invalidate the title of an innocent holder as it cannot be held that the purchaser of a bond or a stock certificate is bound to have knowledge of the advertisement. A registered bond is without coupons and is filled in with the name of the registered owner and is payable to him or his assigns. It is not available to any other person until properly assigned or transferred by the registered owner. If a registered bond or a stock certificate not assigned in blank is lost or stolen the owner can secure a new bond or certificate by furnishing a bond of indemnity.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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