Safekeeping Certificate

AAA

DEFINITION of 'Safekeeping Certificate'

A document that represents ownership of a security or certificate of deposit. Safekeeping certificates are the investor's claim against the institution that is holding his or her financial instruments. These documents are most commonly used to facilitate international securities trading and foreign investment; they benefit both the companies and investors who use them.

INVESTOPEDIA EXPLAINS 'Safekeeping Certificate'

Depositary receipts are a common example of safekeeping certificates. These documents often represent ownership of securities issued and traded outside the United States. Depositary receipts can be bought and sold like stocks and can help investors diversify their holdings.

Other methods for investing internationally include purchasing U.S.-traded international stocks, purchasing stock in U.S.-based multinational corporations, and investing in international index funds and foreign country mutual funds through U.S. brokerages. When assets are placed with a broker, a safekeeping certificate is issued.

RELATED TERMS
  1. Depositary Receipt

    A negotiable financial instrument issued by a bank to represent ...
  2. American Depositary Receipt - ADR

    A negotiable certificate issued by a U.S. bank representing a ...
  3. Global Depositary Receipt - GDR

    1. A bank certificate issued in more than one country for shares ...
  4. International Depository Receipt ...

    A negotiable certificate issued by a bank representing ownership ...
  5. Brokered Deposit

    A large-denomination bank deposit that is sold by a bank to a ...
  6. Security

    A financial instrument that represents: an ownership position ...
Related Articles
  1. Bonds & Fixed Income

    An Introduction To Depositary Receipts

    Learn about a security that allows you to invest in a foreign company through your local exchange.
  2. Investing

    Is there a difference between ADR and ADS?

    American depositary receipts (ADRs) allow foreign equities to be traded on U.S. stock exchanges; in fact, this is how the stock of most foreign companies trades in U.S. stock markets. ADRs are ...
  3. Although several may try to describe the U.S. stock market as “fairly priced,” value-oriented investors recognize the lofty premium for what it is.
    Stock Analysis

    Where Are Foreing Markets Compared To U.S. Stocks?

    Although several may try to describe the U.S. stock market as “fairly priced,” value-oriented investors recognize the lofty premium for what it is.
  4. Africa's economic growth and growing stability has gotten the attention of adventurous investors. What kind of ETF or mutual fund options are available?
    Mutual Funds & ETFs

    Destination Africa: These Funds Offer Easy Access

    Africa's economic growth and growing stability has gotten the attention of adventurous investors. What kind of ETF or mutual fund options are available?
  5. Investing Basics

    Alibaba IPO: Why List In the U.S.?

    For companies like Alibaba, a U.S. listing can provide some benefits that they can't find at the exchanges nearer to home.
  6. Economics

    Where International Real Estate Is Booming

    Which country has the hottest property market right now? The answer will undoubtedly surprise you.
  7. Investing News

    What is Alibaba?

    Alibaba might not yet have the name recognition of other ecommerce players like Amazon, but with its record-breaking IPO, it's due to be a global player.
  8. Investing

    What's the difference between legal defalcation and illegal defalcation?

    Discover what is meant by the term ''defalcation'' and how it can be used in multiple contexts to describe illegal or legal activities.
  9. Economics

    Main Characteristics of Capitalist Economies

    Commerce is based on the principles of capitalism, but there are few, if any, examples of pure capitalism except in theory.
  10. Investing Basics

    Navigating E-commerce: Alibaba, eBay and Amazon

    Amazon, e-Bay and Alibaba were each game-changers in global e-commerce, with each not only finding its own niche, but inventing new ones as they go along.

You May Also Like

Hot Definitions
  1. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  2. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  3. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  4. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  5. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  6. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
Trading Center