Series 6: 8.3.2. Types Of Delivery Instructions

8.3.2. Types of Delivery Instructions

Most securities today are issued in book-entry form as an electronic record on the books of the broker-dealer or the issuer, though physical certificates continue to circulate in the secondary market. Many companies are willing to issue a physical certificate on request, though the security holder will have to pay a nominal fee for the expense. When the security is sold, the certificate holder will have to deliver the certificate to the company’s transfer agent, slowing the execution of the sale.

A purchaser will need to choose a method for holding securities in safekeeping. Transfer and ship and transfer and hold are two options for owners of physical certificates. Book-entry securities generally are held in street name, unless the security owner instructs otherwise, or they may be held by direct registration. Some of these options may not always be available. Some companies do not offer direct registration, for example, and some no longer issue physical certificates.

Transfer and ship. This option is for those who wis