There are not many situations in investing where owning 99 shares is demonstrably smarter than owning 100. Odd-lot tender offers are one of them. Every so often, a company decides to repurchase a large block of its own stock through a tender offer. If too many shareholders want to sell, everybody is normally prorated. But some offers contain… Read More »
You finally found a bank willing to provide a Medallion Signature Guarantee. You have the transfer paperwork, identification and account statements, and the person at the branch even knows what a Medallion stamp is. Then someone asks how much the securities are worth. That is not idle curiosity. Every Medallion Signature Guarantee has a financial limit, and a… Read More »
When a company announces plans to buy back 10%, 15% or even more of its outstanding stock through a modified Dutch auction, investors should pay attention. That does not mean they should buy the stock. A large self-tender is one of the more consequential capital-allocation decisions a public company can make. Unlike an ordinary open-market repurchase authorization, which… Read More »
You have the transfer form. You have your identification. You know you need a Medallion Signature Guarantee. Then your bank tells you: “We don’t do those.” Or perhaps the bank does offer them, but not at your branch. Or only for customers who have been there for six months. Or not for securities held somewhere else. Or the… Read More »
You have some stock to transfer. The transfer agent sends you a form. You fill it out. Then you reach a line that says your signature must be accompanied by a Medallion Signature Guarantee. Fine. You know what a notary is. Surely this is the financial-services version of the same thing. It is not. You bring the document… Read More »