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Stock Power

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Stock power
A power of attorney form giving ownership of a security to another person, brokerage firm, bank, or lender after it has been sold or pledged to that party.
Stock Power
The ability to transfer stock, granted to someone other than the owner. For example, a stockholder may grant stock power to his/her broker. This allows the broker to make decisions regarding the stock without owning it. Stock power is most common when stock is pledged as collateral on a loan. It is a type of power of attorney. See also: Beneficial ownership, bond power.
stock power
A form, separate from a stock certificate, that can be used to transfer stock. A stock power is useful when an investor wishes to deliver an unsigned certificate in one envelope and the stock power form for transfer of the certificate in another envelope. Compare bond power.
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