endorsement in blank

Endorsement in Blank

The signature of the owner of a security transferring ownership to another without any other party being named as the recipient. Whoever holds an endorsement in blank is assumed to be the owner. This is risky because there is no guarantee that the intended recipient will actually receive it. This has become less common over time as ownership records increasingly are kept electronically.

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endorsement in blank

An endorsement of a security by the owner without any transferee being named. Such an endorsement is risky because anyone coming into possession of the security may become its new owner.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.