Securities Transfers and Delivery
Chapters in this video
- 0:00 Registered versus bearer certificates and the good delivery trap
- 0:52 Four requirements for valid registered certificate transfer
- 2:44 Lost, stolen, and counterfeit certificate reporting rules
- 4:27 DRS versus DWAC: ownership list versus electronic loading dock
- 6:44 Mandatory book-entry settlement for depository-eligible trades
- 7:46 Rapid-fire exam recap
What this video covers
- Why arrival alone does not equal good delivery, and the four specific defects that block acceptance of a registered certificate
- The difference between registered certificates (owner name on the face) and bearer certificates (payable to the holder), and which one operates as finders keepers
- What a stock power and bond power are, and when they substitute for direct endorsement on the certificate
- Where criminal loss reports and noncriminal loss reports both must be filed, and why the recipient is identical even though the certificate status differs
- What validation of a certificate entails, and why the securities blotter is the firm's chronological record of tracking movement
- How the Direct Registration System (DRS) differs from Deposit/Withdrawal at Custodian (DWAC), and which one establishes ownership versus mere electronic movement
- When book-entry settlement through a securities depository is mandatory for member-to-member and customer delivery-versus-payment or receipt-versus-payment transactions
Read the full lesson, free
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