1.2.5.4.1 Proper Units for Transferring Stock Certificates
For good delivery, securities certificates must be delivered in proper units. Stock certificates must be delivered in round-lot sales, which means a sale of shares that add up to 100 shares or are divisible by 100 shares. For example, assume Jennifer is delivering 500 shares of common stock to Melissa. Jennifer can deliver the stock in any of the following ways:
- • One 500-share certificate
- • Two 200-share certificates and one 100-share certificate
- • Ten 50-share certificates (50 + 50 = 100, hence, five 100-share groupings)
- • Five 70-share certificates and