The Repository @ St. Cloud State

Open Access Knowledge and Scholarship

Date of Award

6-1972

Culminating Project Type

Thesis

Degree Name

Master of Business Administration: MBA

College

College of Liberal Arts

First Advisor

LaVerne A. Cox

Second Advisor

Darrell F. Wentworth

Third Advisor

Clair E. Daggett

Keywords and Subject Headings

Common Stock Ownership, Electronic Transfer

Abstract

PROBLEM:

The problem researched in this thesis is the extent to which the present transfer time for common stock may be reduced and alternatives available to accomplish this. The purpose of this study is to provide information in this area that is considered important to the brokerage industry, banking industry, regulatory institutions, stock exchanges, investors, scholars, and other interested parties.

SCOPE:

The study emphasizes the limitations and deficiencies surrounding the stock certificate. Background for the study is provided by a review of current literature and its ramifications in brokerage, banking, and market trading.

The results of this study provide a supplement to research already conducted in this area and hopefully an impetus for further study and recommendation.

FINDINGS:

The problems afflicting Wall Street emanated from numerous sources, the primary one being an unanticipated increase in trading volume. Inaccurate forecasting of trading volume by the NYSE in 1965 created an unnecessary void in immediate planning. Similarly, inadequate staffing, as well as few joint efforts by the securities industry toward the adoption of a long-range program, severely hampered Wall Street operations.

A system connecting brokers, exchanges, OTC markets, clearing houses, and depositories by means of a locked-in-trade will provide the basis for the certificateless processing of ownership. The transfer agent would be connected to the locked-in-trade to provide automatic entry of trades into the stockholder's register.

RECOMMENDATIONS:

Brokerage firms and bank transfer agencies should continue to develop computerized technology that will result in reduced transfer time and more efficient operations.

CCS should continue to expand by the inclusion of all actively-traded stocks., both exchange and OTC stocks. CSDS should evolve from CCS and include the stocks of all sectors of the investing public.

The certificateless system should be studied in depth to determine it's overall feasibility. Legislation should be proposed and enacted to allow tor a certificateless transfer system. Computer technology should be refined in regard to the locked-in-trade.

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