Registered Security

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DEFINITION of 'Registered Security'

1. The name given to securities whereby ownership is registered with the issuing company or their agent.

2. Securities that are unavailable for sale due to restrictions placed upon them at the time of issue.

INVESTOPEDIA EXPLAINS 'Registered Security'

1. This is the common method for handling securities. It provides the issuing company with the necessary stockholder information needed to pay out dividends and deliver notices of important company activity.

2. These securities cannot be sold or transferred to other investors unless certain criteria are met under regulations.

Also known as restricted stock.

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