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Simple English definitions for legal terms
stock/bond power
Read a random definition: juriscenter
A quick definition of stock/bond power:
Stock/Bond Power: A legal document that allows someone other than the owner to transfer ownership of a security, such as a stock or bond, to a third party. This document is also known as a stock power and is used to authorize the transfer of ownership without the need for the owner to be present.
A more thorough explanation:
Definition: A legal document that allows someone other than the owner of a security to transfer ownership of that security to a third party. It is also known as a stock power or bond power.
Example: Let's say John owns 100 shares of Apple stock. He wants to sell those shares to his friend, but he can't be present to sign the necessary paperwork. John can use a stock/bond power to give his friend the authority to sign the paperwork on his behalf and transfer ownership of the shares to him.
Explanation: A stock/bond power is a useful tool for transferring ownership of securities when the owner is unable to be present to sign the necessary paperwork. It allows someone else to act on the owner's behalf and complete the transfer of ownership. In the example above, John uses a stock/bond power to give his friend the authority to sign the paperwork and transfer ownership of the Apple stock to him.