Stock Record

DEFINITION of 'Stock Record'

An electronic system that helps brokerage firms keep track of the positions, location and ownership of the securities it is holding. The stock record displays the names of the real and beneficial owners as well as the names of the securities and must be updated any time a trade is executed. Since today's brokerage firms hold shares in street name for investors, meticulous bookkeeping is necessary for keeping track of the actual owners of the securities.

BREAKING DOWN 'Stock Record'

Historically, stocks were issued as physical certificates and holding securities in street name eliminated the brokerage's step of transferring the paper securities to the customer. This system simplified transactions and significantly reduced the time required to settle trades. Today, securities are held in electronic form, making the need for physical transfers obsolete, but making an accurate stock record essential.

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RELATED FAQS
  1. 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 >>
  2. What does "in street name" mean, and why are securities held this way?

    In almost every instance when you buy or sell securities with a broker, your name is not actually on the stock or bond certificate. ... Read Answer >>
  3. Can I give stock as a gift?

    Stocks, bonds or any other securities can be transferred as gifts. Giving the gift of stock also has benefits for the giver. ... Read Answer >>
  4. Can you short sell stocks that are trading below $5? My broker says that I can't.

    Short selling can be very risky for both the investor and the broker. Brokers will often tell investors that only stocks ... Read Answer >>
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  6. 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 >>
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