Business Glossary

sign a document transferring ownership from one party to another. Ownership can be in a number of forms, including tangible property, rights (usually arising out of contracts), or the right to transfer ownership at some later time. The party who assigns is called the assignor and the party who receives the transfer of title-the assignment -is the assignee.

Stocks and registered bonds can be assigned by completing and signing a form printed on the back of the certificate-or, as is sometimes preferred for safety reasons, by executing a separate form, called an assignment separate from certificate or stock/bond power.

When the Options Clearing Corporation learns of the exercise of an option, it prepares an assignment form notifying a broker-dealer that an option written by one of its clients has been exercised. The firm in turn assigns the exercise in accordance with its internal procedures.

An assignment for the benefit of creditors, sometimes called simply an assignment, is an alternative to bankruptcy, whereby the assets of a company are assigned to the creditors and liquidated for their benefit by a trustee.