Holder Of Record

What is a 'Holder Of Record'

A holder of record is the name of the person who is the registered owner of a security and who has the rights, benefits and responsibilities of ownership. The holder of record for a stock typically has shareholder voting rights and receives dividend payouts if there are any. The holder of record for a bond owns the bond and receives the principal and interest payments. When the owner sells the security, he or she ceases to be the holder of record.

BREAKING DOWN 'Holder Of Record'

Securities can be issued in either "registered" or "bearer" form. Registered form means the issuing firm keeps records of a security's owner and mails out payments to him/her. Bearer form means the security is traded without any record of ownership; physical possession of the security is the sole evidence of ownership. Presently, securities are mostly issued in registered form.

RELATED TERMS
  1. Registered Holder

    Shareholders who hold their shares directly with a company.
  2. Bearer Instrument

    A bearer instrument, or bearer bond, is a type of fixed-income ...
  3. Registered Bond

    A bond whose owner is registered with the bond's issuer. The ...
  4. Shareholder Register

    A list of active owners of a company's shares, updated on an ...
  5. Bearer Share

    An equity security that is wholly owned by whoever holds the ...
  6. Common Shareholder

    An individual, business or institution that holds common shares ...
Related Articles
  1. Investing

    Who is a Beneficial Owner?

    A beneficial owner enjoys the benefits of owning an asset even though its title is in another’s name.
  2. Investing

    Knowing Your Rights As A Shareholder

    We delve into common stock owners' privileges and how to be vigilant in monitoring a company.
  3. Managing Wealth

    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 ...
  4. ETFs & Mutual Funds

    The 4 Ways To Buy And Sell Securities

    Know the four main avenues of buying and selling investment instruments.
  5. Managing Wealth

    20 Investments: Preferred Stock

    What Is It? Preferred stock represents ownership in a company, but it usually does not give the holder voting rights (this may vary depending on the company). With preferred shares, investors ...
  6. Investing

    How Does Securities Lending Work?

    Securities lending is the act of loaning a stock or other security to an investor or firm.
  7. ETFs & Mutual Funds

    Proxy Voting Gives Fund Shareholders A Say

    You have the right to take part in important company decisions - even if you cannot attend the meetings.
  8. Investing

    Who is a Shareholder?

    A shareholder is a person, company or other entity that owns at least one share of a company’s stock.
  9. Investing

    What Owning A Stock Actually Means

    Think owning a stock gives you special privileges with the company? Think again.
  10. Markets

    Defining The 3 Types Of Investments

    Investments can be divided into three distinct groups – ownership, lending and cash equivalents.
RELATED FAQS
  1. What happens to the voting rights on shares when the shares are used in a short sale ...

    The registered owner of the security, known as the holder of record, is the investor who retains voting rights. This means ... Read Answer >>
  2. When you buy a stock in a company, does it necessarily mean that one of the shareholders ...

    There are two main markets where securities are transacted: primary and secondary. When stocks are first issued and sold ... Read Answer >>
  3. What does it mean when a bond has a put option?

    A put option on a bond is a provision that allows the holder of the bond the right to force the issuer to pay back the principal ... Read Answer >>
  4. How does the money from the interest on my bond get to me?

    When you buy a regular coupon bond, you are entitled to a coupon, which is typically paid at regular intervals, and the face ... Read Answer >>
  5. What protects an investor’s interest in the case of terrorist sabotage, or act of ...

    Currently, most stock ownership is done electronically thru the combined effort of the brokerage firms and the transfer agents ... Read Answer >>
  6. What are the types of share capital?

    Understand the characteristics of common stock and preferred stock, the two ways by which companies obtain share capital ... Read Answer >>
Hot Definitions
  1. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  2. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  3. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  4. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  5. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  6. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
Trading Center