free right of exchange

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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
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.