Series 24: 5.8.4.6. Rules For Delivery Of Stocks

Taken from our Series 24 Online Guide

5.8.4.6.  Rules for Delivery of Stocks

Recall that a round-lot sale is a sale of shares that is equal to or is divisible by 100 shares. On stock transactions, good deliveries must be made in round lots. 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 five 30-share certificates (70 + 30 = 100, hence, five 100-share groupings)

On the other hand, Jennifer cannot deliver the stock in two 250-share certificates or seven

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