Stock Power
A legal document, separate from a stock certificate, that authorises the transfer of ownership of shares from one party to another.
Full Definition
A stock power (sometimes called an 'irrevocable stock power' or 'assignment separate from certificate') is a form that a registered shareholder signs to authorise the transfer of certificated shares to another party without endorsing the physical certificate itself. The form typically requires the shareholder's signature guaranteed by an eligible guarantor institution through the Medallion Signature Guarantee program. Transfer agents require a stock power when the shareholder's signature cannot be placed on the back of the certificate, or when shares are being gifted, transferred to an estate, or reregistered. Editors must not confuse 'stock power' with 'power of attorney,' which is a broader legal instrument.
Usage
Usage note: Rendered as two words, lowercase. Do not hyphenate. Distinguished from a power of attorney, which grants broader decision-making authority.
In Context
- "A completed stock power with a Medallion Signature Guarantee must accompany the certificate when requesting a transfer." — Transfer request instruction guide
- "The estate executor submitted a stock power and letters testamentary to effect the transfer of shares." — Estate processing checklist