Glossary
Short Squeeze
A short squeeze results when the price of the stock rises and investors who short-sold the stock rush to buy it to cover their short position. As the price of the stock increases, more short sellers feel driven to cover their positions.
Small Estate Affidavit
A notarized document that the heir completes. The form lists the names of all heirs and next of kin of the decedent and states that probate was not initiated for the decedent. It must also be noted in the affidavit that the estate does not exceed the small estate maximum for the state in which the person resided.
Stock Power
Form used to instruct the transfer of ownership of a security from the registered owner(s)s to a third party. Required to be completed in cases of registered book entry shares or where back of certificate is not used. All shareholder(s) signatures are required and it should also be Medallion Guaranteed.
Street Name
Ownership of shares which are held for the benefit of the shareholder in a brokerage account, and are not reflected in the shareholder's name on the records of the corporation. See also Shareholders of Record.
Street Name Holders
Shareholders who hold their shares in their broker's name.
Taxpayer Identification Number
The number used to report dividends and other income. In the case of individuals it is the Social Security Number, in all other instances, it is the Employer Identification Number.
Tenancy by the Entireties
A form of registration, properly abbreviated as "TEN ENT", on stock certificates, which, like a joint tenancy, provides for undivided ownership of the property in question and for the right of survivorship. Unlike a joint tenancy, Tenancy by the Entireties is not subject to partition. Tenancy by the Entireties is not available in all states, and is only available to married couples.
Tenancy in Common
A form of registration, properly abbreviated as "TEN COM" on stock certificates, in which ownership is divided among two or more parties. Tenancy in Common does not provide for the right of survivorship, so for example, if a stock certificate were shared equally by two tenants and one died, the surviving tenant would be entitled to 50% of the value, and the estate of the deceased tenant to the remaining 50% of the value.
Testate
The deceased party had a valid will.
Transfer on Death
A form of registration that allows shareholders to name on their certificate the party they would like to receive the shares at the time of their death. Unlike shares registered with a tenancy clause, a party named as beneficiary of TOD shares has no interest in nor are they an owner of the shares until the original owner dies.
Trust
A relationship established by agreement between a grantor and a trustee to manage assets or property for another's benefit.
Trustee
A person or institution holding property in trust. The trustee manages and invests the assets and makes distributions according to the terms of the trust.