A stock or bond certificate on which the owner's or issuer's name cannot be read. This can occur because of damage, negligence, or other reasons. A mutilated security can only be transferred when the owner has received a guarantee of ownership from a third party to ensure that there is no fraud or other foul play.
A stock or bond certificate that, because of damage or improper printing, cannot be transferred. The owner of a mutilated security must obtain a guarantee to ownership from the transfer agent before delivering the security to a buyer.