A:

It's not uncommon for there to be more than one investment account holder in one household. If multiple members of your household are shareholders of the same company, your residence might get two or more mailings of the same information: companies directly send out information to each individual shareholder. Given the size and the amount of documents that companies send, it's easy to see why you wouldn't want a company to send more than one copy to your house.

Aware of this problem, the SEC has created "householding rules" that permit investors who are considered of the same family to be omitted from duplicate mailings. This omission occurs by the investors' implied consent, whereby investment companies can assume that only one document per household is sufficient. The documents to which the householding rules apply are the single prospectus, annual and semi-annual reports, and proxy and information statements.

It is up to the discretion of each individual company to decide initially whether to apply householding rules, so you may still get duplicate mailings even if you don't want them. You can, however, request that your household receive only one copy of each mailing. Conversely, if you want duplicates but they aren't coming to you, you can ask for them. You can make either of these requests by simply calling the company's investors' information line.

To read more on this subject, see Knowing Your Rights As A Shareholder.

RELATED FAQS

  1. What are the key differences between pro forma statements and GAAP statements?

    Learn the key differences between pro forma and GAAP statements. Review examples and cautionary notes about reliance on pro ...
  2. What are some advantages of ordinary shares?

    Learn about the many advantages of investing in ordinary shares, such as dividends and ownership rights, as well as the benefits ...
  3. What is the difference between preference and ordinary shares?

    Learn about the main differences between preference and ordinary shares including how dividends are paid for both types of ...
  4. How does additional equity financing affect existing shareholders?

    Learn about how equity financing affects existing shareholders. By issuing and selling shares on the open market, equity ...
RELATED TERMS
  1. Enterprise Investment Scheme (EIS)

    A UK program that helps smaller, riskier companies to raise capital ...
  2. Record Date

    The cut-off date established by a company in order to determine ...
  3. Registered Holder

    Shareholders who hold their shares directly with a company.
  4. Entitlement Offer

    An offer to purchase a security or other asset that cannot be ...
  5. Registration Right

    A right which entitles an investor who owns restricted stock ...
  6. Volcker Rule

    The Volcker rule separates investment banking, private equity ...

You May Also Like

Related Articles
  1. Investing

    Strategies Activist Shareholders Follow

  2. Investing

    Top Tips on Catering to Millennial Clients

  3. Investing Basics

    Shareholders: Vote Your Proxy and Be ...

  4. Stock Analysis

    Google Stock: A Tale of Two Share Classes

  5. Stock Analysis

    Intel Doesn't Need New Management

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!