stock power

Stock Power

A power of attorney that allows the current owner of a registered security to transfer ownership to another party.

Notes:

The party to whom ownership is being transferred can be a bank, brokerage firm, or another investor. Stock power may also be granted if the stock is pledged as collateral for a loan.

See also: Holder of Record, Registered Security

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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.

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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.