You may need a stock transfer form more often that you can imagine
The stock market is very often down during the crisis but that does not prevent millions of people from playing every day (apart from the weekends when it is closed). Yes, it is really addictive and many people lose a fortune but a lot of people spend their lives trying to consistently beat the market. A few even succeed in achieving that. Technology development made it much easier to get to the stock market and what is more important, to follow and control your operations. In real time, almost without delay, all over the world! Thirty years ago, such a thing was unthinkable.
In those not so distant days, one of the factors that delayed trade was the stock transfer form. It is simply a form stating that some stock (it can be shares, bonds, obligations, options, etc.) goes from one hand to another. Since there were no computers to do that automatically, people had to do it the old-fashioned way. All that, of course, took time and made trade far slower than it is today. Not to mention that the transfer could not be placed in an electronic system immediately. Now, all that is gone or… is it?
Well, you will see a stock transfer form in its traditional form very rarely nowadays. However, many people use an electronic stock transfer form many times every day without even realizing it. How is that so? Well, as we have said, we enjoy the benefits of technology. When you register on a stock exchange market, you are supposed to be familiar with its rules. These are normally the tiny font legal documents which state fees, rules of trade, working hours, etc. A lot of people do not bother to read them at all. If you search carefully enough though, you will find that each of your transactions which includes trading stocks, has this electronic form. It says the conditions under which stock can be transferred. Once you click the “OK” button, it means that you agree with the terms, so better read them. It is far more convenient this way and you can always print the form from your computer. Think of it as an online payment – you do not need to see the money to know it happened.
However, there are certain cases, where a paper stock transfer form is still used. For example, if the stock is not freely traded on any stock exchange market and is simply sold from one entity to another, then it is much easier to do this by paper than to create a software product for this single transaction. Another common example is in case of inheritance where one party receives stock from another. In general, it can be said that the paper stock transfer form is used for stocks which are quite rarely traded so that the trade does not justify the creation of an electronic system. If you are still unsure, better seek a professional legal advice.
The stock market is very often down during the crisis but that does not prevent millions of people from playing every day (apart from the weekends when it is closed). Yes, it is really addictive and many people lose a fortune but a lot of people spend their lives trying to consistently beat the market. A few even succeed in achieving that. Technology development made it much easier to get to the stock market and what is more important, to follow and control your operations. In real time, almost without delay, all over the world! Thirty years ago, such a thing was unthinkable.
In those not so distant days, one of the factors that delayed trade was the stock transfer form. It is simply a form stating that some stock (it can be shares, bonds, obligations, options, etc.) goes from one hand to another. Since there were no computers to do that automatically, people had to do it the old-fashioned way. All that, of course, took time and made trade far slower than it is today. Not to mention that the transfer could not be placed in an electronic system immediately. Now, all that is gone or… is it?
Well, you will see a stock transfer form in its traditional form very rarely nowadays. However, many people use an electronic stock transfer form many times every day without even realizing it. How is that so? Well, as we have said, we enjoy the benefits of technology. When you register on a stock exchange market, you are supposed to be familiar with its rules. These are normally the tiny font legal documents which state fees, rules of trade, working hours, etc. A lot of people do not bother to read them at all. If you search carefully enough though, you will find that each of your transactions which includes trading stocks, has this electronic form. It says the conditions under which stock can be transferred. Once you click the “OK” button, it means that you agree with the terms, so better read them. It is far more convenient this way and you can always print the form from your computer. Think of it as an online payment – you do not need to see the money to know it happened.
However, there are certain cases, where a paper stock transfer form is still used. For example, if the stock is not freely traded on any stock exchange market and is simply sold from one entity to another, then it is much easier to do this by paper than to create a software product for this single transaction. Another common example is in case of inheritance where one party receives stock from another. In general, it can be said that the paper stock transfer form is used for stocks which are quite rarely traded so that the trade does not justify the creation of an electronic system. If you are still unsure, better seek a professional legal advice.
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