Purpose

• A transmittal letter accompanies many types of documents, providing an introduction to the reader. At times, the letter will provide information to the reader that the document itself does not contain. For example, a letter of transmittal for stocks might include the reasons why the sender is shipping the certificates. Typically, the letter is a formal requirement for many businesses and business documentation.
  
  

Stock Transmittal Letter

• Most investors no longer associate stock certificates with the actual selling and trading of stocks due to technological advancements that allow them to buy and sell shares online. However, stock certificates do still exist. When a broker, corporation or banking entity ships these certificates, the person or organization often includes a letter of transmittal. This letter states the number of certificates included and the purpose for which they are being transmitted.
  
  

SEC Transmittal Letter

• When a corporation files its annual and quarterly reports, it usually supplies the Securities and Exchange Commission with a letter of transmittal. This letter accompanies the transmission as an exhibit to the main document. It usually summarizes the information that the main document provides and thanks the SEC for its time in reviewing it. In some cases, the letter will provide information to the SEC that the company feels is necessary for them to have but does not wish to have disseminated to the general public. Usually this exhibit is not available for the public to review.
  
  

Format

• A letter of transmission is a formal business document and should resemble a formal letter. The name and address of the recipient, along with a greeting and signature, should be included. The address of the greeting is usually formal. Unless the sender expects correspondence in return, it is not necessary to include his address.