STREET NAME SECURITIES
Back to GlossaryDefinition
Ownership records of marketable securities maintained by brokerage firms rather than by individual corporations. Owners receive regular statements of their holdings rather than individual certificates.
Summary
Street name securities refer to stocks, bonds, or other investments that are held in the name of your brokerage firm rather than directly in your name. Think of it like having your mail delivered to your office building's main address rather than directly to your desk - the brokerage firm holds the actual certificates and manages the paperwork, while you remain the beneficial owner who receives all the rights and benefits. This system makes trading much faster and more efficient since you don't need to physically transfer paper certificates every time you buy or sell securities.
Usage Context
Understanding street name securities is crucial when learning about modern securities markets, brokerage operations, investor protection, and the mechanics of buying and selling stocks and bonds.
Common Confusions
- Thinking the brokerage firm owns your securities instead of just holding them
- Confusing street name with the actual street address of the company
- Believing you have less protection or rights when securities are held in street name
- Assuming you can't vote in shareholder meetings with street name securities
