DEFINITION of 'In Street Name'

Securities held in street name are held electronically in the name of a broker or other nominee, instead of the name of the true beneficial owner.

BREAKING DOWN 'In Street Name'

Today, virtually all securities are held electronically in street name, on behalf of the customer. Not having to register securities in the customer’s name, and match up each stock certificate to each customer, has made electronic trading possible – and given small investors access to derivatives such as warrants and contracts for difference and enabled them to buy shares on margin.

Holding securities in street name does not diminish the beneficial owner's rights. It has facilitated speedy trading and trade settlement and reduced the risk of loss and theft that the physical transfer of stock certificates would entail. By lowering transaction costs, the street name convention has helped to lower commissions and boosted investment returns.

Although holding securities in street name is the norm, some investors still prefer to hold physical certificates in their name. Because it is more expensive to transfer ownership this way, brokers will charge a higher rate for the inconvenience.

  1. In Street Name

    When a security is held in street name, a brokerage holds the ...
  2. Active Box

    Active box is a physical location in a brokerage where securities ...
  3. Beneficial Owner

    A beneficial owner is the true owner of an asset or security ...
  4. Cage

    The cage is the department of a brokerage firm that receives ...
  5. Stock Record

    A stock record is a detailed listing of securities held by a ...
  6. Registered Holder

    A registered holder is a shareholder who holds their shares directly ...
Related Articles
  1. Investing

    Old Stock Certificates: Lost Treasure or Wallpaper?

    What if you've discovered some old shares in bearer form? Follow our tips to find if these old stock certificates are worth anything.
  2. Small Business

    How to Pick a Winning Name for Your Business

    Many entrepreneurs are big picture people and have a hard time choosing a company name. Here are two major strategies for naming a business.
  3. Investing

    For Hedge Fund Investors, Naming and Branding are Key

    A report shows investors rely disproportionately on fund names when making investment decisions.
  4. Investing

    The 4 Ways To Buy And Sell Securities

    Know the four main avenues of buying and selling investment instruments.
  5. Insights

    What Is a Silver Certificate Dollar Bill Worth Today?

    Although a silver-certificate dollar bill no longer can be exchanged for silver, the date, grade and unique features make certain certificates very valuable.
  6. Small Business

    How To Make Money With Domain Names

    With the Internet getting bigger every day, domain names have now become a commodity, and for investors who are willing to take on the risks, they have great potential.
  7. Financial Advisor

    Panama Papers Name Emma Watson, Emilio Estevez, Other Celebs

    If you're mad at David Cameron, brace yourself to be mad at Hermione Granger as well. And possibly one Charlie's Angel. And the world's most beautiful woman.
  8. Personal Finance

    Choosing an Advisor: Wall Street Vs. Main Street

    A high-profile name alone won't meet your investing needs. What else to look for in an advisor.
  9. Investing

    5 Misconceptions About Discount Brokers

    While discount brokers are the perfect choice for some investors, their business model could be detrimental to others.
Trading Center