What is Dirty Stock?
Dirty stocks are any type of stock issues that are not considered to have a good delivery. When a stock is identified as being dirty, the transaction comes to a halt while the status of the stock is evaluated. Any problems that are found to exist must be resolved before the dirty stock is awarded the status of good delivery. It is only after any outstanding problems are corrected that the transaction may resume and be completed. The status of dirty stock comes about due to some irregularity in the supporting documents that confirm the veracity of the stock. Before the ownership of the shares of stock may be transferred from in incumbent owner to the new owner, it is necessary to make sure that all endorsements and any other legal documentation is in order. Checking the status of these types of documents is standard process in any stock transaction. When it is discovered that something is amiss with either the transfer documents or the endorsements, the progress of the transaction cease
