What is a 'Holder Of Record'

A holder of record is the name of the person who is the registered owner of a security and who has the rights, benefits and responsibilities of ownership. The holder of record for a stock typically has shareholder voting rights and receives dividend payouts, if there are any. The holder of record for a bond owns the bond and receives the principal and interest payments. When the owner sells the security, he or she ceases to be the holder of record.

BREAKING DOWN 'Holder Of Record'

Securities can be issued in either "registered" or "bearer" form. Registered form means the issuing firm keeps records of a security's owner and mails out payments to him/her. Bearer form means the security is traded without any record of ownership; physical possession of the security is the sole evidence of ownership. Bearer form securities have largely been phased out due to their potential for misuse. Presently, securities are mostly issued in registered form.

RELATED TERMS
  1. Bearer Instrument

    A bearer instrument, or bearer bond, is a type of fixed-income ...
  2. Bearer Form

    A bearer form is a security not registered in the issuing corporation's ...
  3. Registered Bond

    A registered bond is a bond which has its owner registered with ...
  4. Registered Security

    A registered security is either a security whose owner is kept ...
  5. Definitive Securities

    Definitive securities are securities issued in the form of a ...
  6. Security

    A security is a fungible, negotiable financial instrument that ...
Related Articles
  1. Investing

    How to use insider and institutional ownership

    Learn why insider and institution stock ownership reveal much information about the stock. Understand what to consider when making well-informed investment decisions.
  2. Investing

    Know your shareholder rights

    Common-stock owners have numerous privileges and should be vigilant in monitoring a company. Read on to learn what rights you have as a shareholder.
  3. Taxes

    The Purpose Of 1099 Forms

    The need for 1099 forms and why you must track the income reported on them. If you don't, the IRS will find it anyway and go after you – a costly mistake.
  4. Small Business

    Which Type of Organization Is Best For Your Business?

    Learn the differences between the types of business organizations so you can determine how to best structure your business for tax and liability limitations.
  5. Investing

    SEC Filings: Forms You Need To Know

    The forms companies are required to file provide a clear view of their histories and progress.
  6. Financial Advisor

    On The Record: Communications With The Public

    NASD Rule 2211 can make or break your career as a registered principal.
  7. Insights

    5 Countries That Own the Most U.S. Debt

    China gets a lot of attention for being the top foreign holder of U.S. debt, but some other top holders may surprise you.
  8. Personal Finance

    How to Sell a Car With a Lien

    Vehicle owners wondering how to sell a car with a lien on the certificate of title have four options to both remove the lien holder and transfer ownership.
  9. Insurance

    How to Avoid Taxation on Life Insurance Proceeds

    Decrease the value of your taxable estate and prevent the tax man from getting you one last time.
RELATED FAQS
  1. What Voting Rights Do Shorted Shares Have?

    When it comes to short sales, the problem that arises is determining who is the holder of record. Read Answer >>
  2. What are the types of share capital?

    Companies obtain share capital by selling ownership shares to the public. The two types of share capital are common stock and preferred ... Read Answer >>
  3. How Are Savings Bonds Taxed?

    Learn who is responsible for reporting U.S. EE savings bond interest for taxation and when the interest can be reported for ... Read Answer >>
  4. What are the differences between preference shares and bonds?

    Learn about the differences between bonds and preferred shares, including how payments are made on them and how corporate ... Read Answer >>
Trading Center