For investors and traders the most prominent example occurs when an option contract is assigned, the option writer has an obligation to complete the requirements of the contract.
But there are other types business transactions known as an assignment.
Money is automatically subtracted from a worker's paycheck without consent if they have a history of nonpayment.
For example, a person delinquent on $100 monthly loan payments has a wage assignment deducting the money from their paycheck and sent to the lender.
A trademark owner transfers, gives, or sells another person interest in the trademark.
To be effective, an assignment must contain parties with legal capacity, consideration, consent, and legality of object.
Any rental income would then be paid directly to the lender.
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So an option seller with open positions is matched with the exercising buyer via automated lottery.
The randomly selected seller is then assigned to fulfill the buyer's rights. Once assigned the writer (seller) of the option will have the obligation to sell (if a call option) or buy (if a put option) the designated number of shares of stock at the agreed upon price (strike price).