free right of exchange

(redirected from Free Exchange Right)

Free right of exchange

An investor's right to transfer securities from one name to another name without paying charges that accompany a sales transaction.

Free Right of Exchange

The right of an owner of a security to give it away or trade it for another security without any charges or fees. The free right of exchange differs from a sale in that money does not change hands. As a result, the transaction is exempt from fees on a security exchange.

free right of exchange

The ability of an investor to transfer a security from one form to another without charge. For example, free right of exchange permits a security owner to transfer a certificate from registered to bearer form or from street name to registration in the investor's name without paying a charge.