It's funny you mention that, MB. I was just discussing that with someone the other day.
Even though I find the "counterfeit shares" theory (as pertains to naked short selling and other conspiracies) hilarious, it is interesting - and you're absolutely right - how few...at least, that I'm aware...security features stock certificates have on/in them.
I think, and I hope I'm wrong, that most of them have only a stamp/seal and a signature evidencing their ownership and legitimacy. Of course, they're kept under lock and key, with fairly strict incoming/outgoing ledger entries, and the NASD/NYSE mandate that all self-clearing firms that have a vault/box do a long/short count and immediately report differences...every 30 days?...off the top of my head. (Anyone with a Series 27, please chime in.)
But while I may be wrong, I'm not sure that they have, or are required to have, watermarks, metal filaments, or any of the other confidence-inspiring measures that you may find in, say, a $20 bill.
I know that in the late sixties, theft of bonds in bearer form was extensive, and there have recently been several pushes in the SIA to move (both to expedite the move to T+1 settlement and to increase security) to a fully 100% electronic, book entry form of share ownership and transfer.
LP. |
