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.