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Related to stock power: Bond 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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
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.