Series 24: 5.8.7.2.2. Due-Bills

Taken from our Series 24 Online Guide

5.8.7.2.2. Due-Bills

In order to ensure proper delivery of dividends, delivery of securities that carry future earnings will include a due-bill. A due-bill is a form indicating that when the dividends are paid, they will go to the seller. Due-bills are used when dividends or interest should have gone to the seller, but were instead delivered to the buyer.

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