Free Right Of Exchange

Business, Legal & Accounting Glossary

Definition: Free Right Of Exchange




Full Definition of Free Right Of Exchange


Free right of exchange refers to the ability to transfer a stock (security/equity) between entities without paying the usual charge or commission that would accrue to a regular sales transaction.

This can be utilized to change the named owner of a stock from one entity to another. For example, when an equity held by a broker-dealer on behalf of a client (referred to as being held in¬†street name) is transferred into that customer’s name directly. Among other reasons, this might be done to facilitate eligibility for a dividend-reinvestment plan.


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Free Right Of Exchange. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/free-right-of-exchange/ (accessed: September 23, 2021).
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Free Right Of Exchange. PayrollHeaven.com. Retrieved September 23, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/free-right-of-exchange/

Definition Sources


Definitions for Free Right Of Exchange are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th August, 2021 | 0 Views.