Letter stock

Letter stock
Privately placed common stock, so-called because the SEC requires a letter from the purchaser
stating that the stock is not intended for resale.
Related Terms: ...

LETTER STOCK " See: Investment Letter.
LETTERS TESTAMENTARY " A certificate issued by the court evidencing the appointment of the executor of an estate.

letter stock
Stock that bears a restrictive legend on the certificate that limits the owner's ability to sell. All letter stock is restricted stock.
level factor amortization ...

See also letter stock
Related Terms:
Dictionary of Finance and Investment Terms ...

Investment Letter Stock
Stock issued under a restrictive letter in which the purchaser states that the purchase of the securities is being made for investment purposes only and is not being purchased with the intent of resale.

Companies were now awarded three letter stock exchange symbols. These stocks were placed on the AMEX (American Stock Exchange) or the NYSE (New York Stock Exchange).

An assurance by a mutual fund shareholder that a certain amount of money will be invested monthly, in exchange for lower sales charges. In mergers, a preliminary merger agreement between companies after significant negotiations.
Letter stock ...

a seller and a buyer who is purchasing private placement securities (unregistered securities under Regulation D). The investor affirms that the purchase is a long-term investment and not for resale. The securities are also called "letter stock".

The certificates have a restrictive legend that indicates they are not registered. Because the investment letter is essential to the security's issuance, this type of security is called either "letter security", "letter stock", or "letter bond".

See also: Margin account, Convertible Bond, Stock split, Banks, Total capitalization