Series 24: Rules For Delivery Of Stocks

Rules for Delivery of Stocks

Recall that round-lot sales mean a sale of shares that add up to 100 shares or are 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)

Jennifer cannot deliver the stock in two 250-share certificates or seven 70 share certificates and one 10 shar