Stock Certificate Legend refers to wording found on the front or back of a stock certificate which serves as notice of and a brief explanation of certain restrictions affecting the stock shares represented by that stock certificate.
The reverse side of a stock certificate generally bears a form of assignment, which, when properly executed, transfers title to the stock represented by the certificate.
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Two types of stock that may contain a stock legend are: Control stock and restricted stock, Control and restricted stock are both subject to transfer restrictions. The restriction stipulates when and how the securities may be lawfully sold.
A restricted security must bear a legend giving notice of the restrictions. That legend which must be removed after the restrictions are lifted. A security with a legend cannot be transferred or sold and must be removed before any transaction.
A legend is a statement on a stock certificate noting restrictions on the transfer or sale of a company's stock.
In India, the two primary platforms include the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) ? exchanges over which all the stock trading takes shape on a regular basis.
There are two main types of stocks: common stock and preferred stock. Common Stock. Common stock is, well, common. ... Preferred Stock. Preferred stock represents some degree of ownership in a company but usually doesn't come with the same voting rights. ... Different Classes of Stock.
