Question

When an investor sells a common stock and forgets to sign the assignment form on the back of the certificate the firm will:

Answer 1

The firm will send the investor a stock power.

Step-by-step explanation:

The signature of an investor on the assignment form makes the certificate nonnegotiable and authentic. But in the case in which the signature was not appended, it is required of the firm to send a stock power to the investor.

Stock power is a right granted by an attorney which authenticates the right for a change of possession.