What is a dirty stock?
Dirty Stocks are any type of stock problems that are not considered good delivery. When the shares are identified as dirty, the transaction stops while the stock status is evaluated. All problems found to exist must be resolved before granting a dirty warehouse status of good delivery. Only after the transactions have been repaired only after the transactions are renewed and completed.
The state of dirty shares comes due to a certain discrepancy in support documents that confirm the truth of the warehouse. Before the ownership of shares can be transferred from the current owner to the new owner, it is necessary to ensure that all accompaniment and any other legal documentation are in order. Checking these types of documents is a standard process in any stock transaction.
When it is found that something is in order either transmission documents or accompaniment, the progress will stop the transaction. At this point, shares are identified as dirty and PRof the sheets of acquiring the required documents or the required accompaniment. Once all documentation is corrected, changed or added, the transaction status is subordinated. If the review results indicate that there are no remaining problems with the shares, the dirty shares status will turn into a good delivery status and the transaction goes to complete.
The concept of dirty shares is a means to ensure that shares transaction are carried out in a uniform manner and that the opportunity to illegal or unethical sale is minimized. Because good delivery condition requires that all documentation and accompaniment be verified and found that they are okay, today it is extremely difficult to pass on supplies with questionable pedigrees. As a result of this dirty warehouse, Buyers are somewhat protected from losing a large amount of money for buying shares.
often the incidence of dirty shares has nothing to do with an apparent attemptto cheat anyone. It is much more likely that a simple omission of some support documents or possible improper wording or information has come into the documentation. These types of problems can normally be solved for very little time, allowing dirty shares to gain assessment as good delivery and allow the transaction to continue.