Did you know that, in the world of business, the loss of a stock certificate can be financially devastating? Could it happen to you? If you are holding your stocks with a transfer agent, chances are your answer is yes. The purpose of a lost stock certificate surety bond is to protect the corporation, the transfer agent and others against unauthorized financial transactions if lost stock certificates are ever wrongly used by an individual or corporation. The certificate may be redeemed for its face value even if it has been improperly or fraudulently issued. The potential cost to these parties can be far greater than the coverage afforded by a Lost Stock Surety Bond.
When you are in possession of a promissory note, bond or security, it’s considered as one of your valuable assets. But what if you have lost this asset? Well, there’s no need to worry as the Securities and Exchange Commission has made a scheme for such cases. For more detail, please refer to the info-graphic below.
