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What are street name securities?

Street name securities

Street name securities is a US term that refers to your broker holding securities in its name after you purchase them, rather than your own. You’ll be recognised as the ‘beneficial’ owner in the broker’s records and receive statements, but no certificate. In the UK this is a ‘nominee account’.

Where have you heard about street name securities?

Street name securities is an old Wall Street term that pre-dated electronic trading but has survived to the present day. When physical certificates were issued for every transaction it was easier for a broker to hold them all in its own name. Today the same is done electronically.

What you need to know about street name securities.

As a private investor you won’t even notice that your securities aren’t actually held in your name but in that of your broker’s – known as street name securities. You’ll receive quarterly and annual statements from your broker listing you as the true or ‘beneficial’ owner of the securities. This practice makes life easier and safer for both you and your broker, particularly now that certificates are held in electronic rather than physical form. The broker can transfer a large volume of certificates every day, and by not holding them physically in your name, you’re safe from loss or theft.

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