17.5.2.3. Rules for Delivery of Stocks
On stock transactions, good deliveries must be made in round lots, which are blocks of 100 or blocks that are divisible by 100. 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)
Jennifer cannot deliver the stock in two 250-share certificates or seven 70-share certificates and one 10-share certificate. Only if the certifi