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This video explains lost stock certificate bonds and how insurance agents can acquire them for clients. A lost stock certificate bond is a surety bond that protects the stock-issuing company and its transfer agent from potential financial loss if the certificate holder does not genuinely own the stock. This bond is necessary for individuals with lost, stolen, or destroyed stock certificates and is valued at the stock's dollar amount at issuance. The bonds carry an open penalty, meaning the surety company will pay out the current stock value at the time of a claim. Costs for these bonds range from 1% to 3% of the bond amount, influenced by the applicant's credit score and financial status to minimize claims.