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. Non-Objecting Beneficial Owner ...

    A beneficial owner who gives permission to a financial intermediary ...
  2. Account

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

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

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

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

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

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center