Failure To Deliver
Yep, doc. The baby's just gonna stay in there. Or not.
"Deliver" in this parlance also does not mean to surgically remove a liver. Instead, it refers to the delivery or documents supporting a given securities transaction.
Let's say the person buying the securities ended up being a Somalian warlord, and their cashola was frozen by the FBI. In that case, the salesperson could not deliver the securities fairly without violating all kinds of U.S. securities laws. It was a failure to deliver sitch.
Related or Semi-related Video
Finance: What is Good Delivery?11 Views
Finance allah shmoop What is good delivery All right Well
here's bad delivery You have been there if a security
that's traded on an exchange meets the requirements toe permit
it to be transferred from seller to buyer While then
the transfer is said to be of good delivery When
it happens legal transfer happens with no hiccups and well
life is good But on the other hand if a
share of stock is say restricted as in a one
forty four a type situation so that it cannot be
transferred Well then good delivery of this share cannot be
realized Recall that a one forty four a restriction is
a common provisions that insiders like early investors and management
and founders of a recently i po'd company fall under
that is for a six months and change after the
company was first taken public they are restricted from being
able to transact in there stock They couldn't sell it
And nobody could take good delivery of those shares Well
why would there be a provisioned for good delivery in
the first place Well you can imagine that before the
various regulatory bodies took hold in america there was all
kinds of room for fast talking city slickers to sell
no value Floor tiles of blue sky too ignorant farmers
who really didn't know what they were buying or that
various legal hoops had to be jumped through first So
good delivery actually became a hurdle that brokerages and their
clients had to pay attention to And well let's hope
they get it better Then this ups guy We're still 00:01:29.509 --> [endTime] angry about our glasses Yeah
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