In Street Name

AAA

DEFINITION of 'In Street Name'

A brokerage account where the customer's securities and assets are held under the name of the brokerage firm, rather than the name of the individual who purchased the security or asset. Although the name on the certificate is not that of the individual, they are still listed as the real and beneficial owner and have the rights associated with the security.

INVESTOPEDIA EXPLAINS 'In Street Name'

It is more convenient for brokers to hold securities in street name due to the complexity of tracking each stock certificate to each individual. Almost all brokers hold securities electronically and all securities in a brokers name comprise their inventory. Any time a client needs to buy or sell stocks, the broker is readily able to allocate a portion of their inventory as required.

If brokers were to hold an inventory of paper securities, securities transactions would take more time. For example, if a client would like to sell their certificates, the broker would have to find the exact stock certificates owned by the client and send those securities back to the issuing company who would then change the names on the securities to that of the new owners.

RELATED TERMS
  1. Account

    1. An arrangement by which an organization accepts a customer's ...
  2. Bearer Form

    A security not registered in the issuing corporation's books ...
  3. Holder Of Record

    The name of the person who is the registered owner of a security ...
  4. Dematerialization - DEMAT

    The move from physical certificates to electronic book keeping. ...
  5. Broker

    1. An individual or firm that charges a fee or commission for ...
  6. Security

    A financial instrument that represents: an ownership position ...
Related Articles
  1. I lost my share certificate. Do I still ...
    Investing

    I lost my share certificate. Do I still ...

  2. What does
    Options & Futures

    What does "in street name" mean, and ...

  3. Brokers and Online Trading
    Options & Futures

    Brokers and Online Trading

  4. The NASDAQ Pre-Market: What You Need ...
    Investing Basics

    The NASDAQ Pre-Market: What You Need ...

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center