Holding Securities
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Term
Main definition
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These are three general ways for a holder to hold any given securities, including but not limited to any given shares of stock: physical certificate, street name registration, or direct registration.
(1.) Physical Certificate - The security is registered in your name on the issuer's books, and you receive an actual, hard copy stock or bond certificate representing your ownership of the security.
(2.) Street Name Registration - The security is registered in the name of your brokerage firm on the issuer's books, and your brokerage firm holds the security for you in 'book-entry' form. 'Book-entry' simply means that you do not receive a certificate. Instead, your broker keeps a record in its books that you own that particular security.
(3.) Direct Registration - The security is registered in your name on the issuer's books, and either the company or its transfer agent holds the security for you in book-entry form. The 'Direct Registration System' (also known as 'DRS') allows investors to transfer securities held this way.
