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To: Mama Bear who wrote (1373)	4/10/2001 11:21:34 AM
From: LPS5	Respond to of 12465

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.

To: Mama Bear who wrote (1373)	4/16/2001 11:27:11 AM
From: thestockrider	Respond to of 12465

Actually certificates (I believe most) in the last decade use this Light Signatures TM stuff to make them harder to counterfeit. Some guy has the patent and is making some serious coin. To sell stock, a commercial bank or brokerage has to guarantee the signature of the person selling the stuff so that institution is on the line in some way. They probably already have a relationship with the person or place holds on the accounts. Lastly, certificate numbers get checked at the transfer agent (where the stock is sent after the transaction) so any monkey business will turn up within a month. -thestockrider