What is a stock power?
A stock power is a power of attorney enabling a person other than the owner to transfer stock ownership to another party. A properly executed stock power received by Aspen Stock Transfer Services will empower Aspen Stock Transfer Services to transfer stock ownership to a third party.
What is a stop transfer?
A stop transfer is an order placed against a particular stock or bond certificate that has been reported lost or stolen. This prevents any transfers being made until the security has been found or replaced.
What is a record date?
A record date is the exact date established by an issuer of a security for the purpose of determining the shareholders who are entitled to receive a dividend or distribution.
What is a payable date?
The date on which a declared stock dividend is scheduled to be paid. A payable date is the date on which a declared stock dividend is scheduled to be paid to shareholders.
What is a stock split?
A stock split is a corporate action in which a company's existing shares have been increased into multiple shares. Granting that the number of shares increase by a specific number, the total dollar value of shares remains the same, because no real value has been added as a result of the split. One reason as to why stock splits are performed is when a company's share price has escalated so high that the stocks are too expensive to be purchased by investors. The term stock split is also referred to as scrip issue, bonus issue, capitalization issue or free issue.
What is a Medallion Guarantee?
A Medallion Guarantee is a guarantee seal applied to securities to certify that the signature on a certificate or stock power is genuine and has legally binding authority. A Medallion Guarantee is obtained from an eligible institution, such as a commercial bank, broker, or trust company. Only institutions participating in an officially recognized Medallion Guarantee program may provide this Medallion Guarantee.
What does Backup Withholding mean?
Backup Withholding is when tax that is levied on investment income when the investor withdraws his or her investment income, at an established tax rate. Backup withholding helps to ensure that government tax-collecting agencies will be able to receive income taxes owed to them from investors' earnings.