Custodial Receipt

DEFINITION of 'Custodial Receipt'

A receipt representing a security held by a custodian or transfer agent. As such, it represents ownership of the security by the depositor. A security in custodial receipt form is usually non-transferable.

BREAKING DOWN 'Custodial Receipt'

In the municipal bond market, custodial receipts refer to securities that represent the right to receive future principal and interest payments on municipal obligations underlying these receipts. In a typical custodial receipt arrangement in this market, an issuer or owner of a municipal obligation deposits it with a custodian in exchange for two or more classes of receipts.

RELATED TERMS
  1. Receipt

    A written acknowledgment that something of value has been transferred ...
  2. Treasury Receipt

    A zero-coupon bond that doesn't pay interest at regular intervals ...
  3. Custodial Account

    1. An account created at a bank, brokerage firm or mutual fund ...
  4. Custodian

    A financial institution that holds customers' securities for ...
  5. Vault Receipt

    A document frequently used as a delivery instrument to indicate ...
  6. Escrow Receipt

    A bank guarantee that an option writer has the underlying security ...
Related Articles
  1. Taxes

    Which Receipts Save Big Money at Tax Time

    Don't wait to April 13th to set up a smart receipt-filing system. These 7 categories could save you some significant money.
  2. Budgeting

    Do You Need A Rent Receipt?

    Landlords don't always bother to send receipts to renters. But there are important reasons renters should insist on getting proof they paid their rent.
  3. Professionals

    What are the Duties of a Custodian?

    Custodian is a financial term that describes an institution, usually a specialized bank, which holds customers’ securities for safekeeping.
  4. Economics

    American Depositary Receipt Basics

    Thanks to American depositary receipts, investors now have a world of investing opportunities to choose from.
  5. Taxes

    Tips To Make Next Year’s Taxes Less Stressful

    You might be ready to put the stress of tax preparation behind you until next season, but ignoring your personal tax situation for 11 months of the year is what got you into this mess. Find out ...
  6. Investing News

    Tax Receipts Indicate the U.S. Economy Is Still OK

    When the economic data send conflicting signals with respect to the near-term growth outlook, it is useful to focus on high frequency data series that either do not get revised or only get revised ...
  7. Options & Futures

    20 Investments: Conclusion

    Now that you have an idea of some of the places where you can invest your hard-earned dollar, we hope that you are on your way to making your money work for you. Here's a recap of the 20 investments ...
  8. Budgeting

    When Using a Money Order Makes Sense

    Money orders are usually the least expensive way to send "cleared" funds to pay a bill (or traffic ticket). Here's how they work and what to watch out for.
  9. Stock Analysis

    Consider These Municipal Bond ETFs

    Though relatively low-risk, there are still some factors to consider when taking the plunge into municipal bond ETFs.
  10. Bonds & Fixed Income

    A Look at the Pros and Cons of Muni Bonds

    Considering muni bonds? Here's a look at their pros and cons.
RELATED FAQS
  1. Do small banks ever act as custodians?

    Examine why smaller custodian banks struggle to compete with larger custodian banks because of economies of scale and existing ... Read Answer >>
  2. What is the difference between a custodian bank and a mutual fund custodian?

    Read about the difference between a normal custodian bank and a mutual fund custodian, why mutual funds use custodians and ... Read Answer >>
  3. Why would a company choose to use global depositary receipts (GDRs) for financing?

    Learn why a company might choose to utilize global depositary receipts for financing, along with the many other benefits ... Read Answer >>
  4. What is the difference between a custodian bank and a self-directed retirement account ...

    Learn about how an IRS-approved, self-directed retirement account custodian compares and contrasts with traditional custodian ... Read Answer >>
  5. Is it plausible to take from an IRA and invest in bonds for a more secure return ...

  6. What are the benefits of global depositary receipts (GDRs) to investors?

    Discover how the issuance and use of global depositary receipts can benefit investors in a variety of ways, including greater ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center