Understanding Street Name Securities: Benefits, Ownership, and Anonymity Explained

which one of the following is generally true concerning securities held in street name?

the brokerage firm is the owner of the record.

Generally, when securities are held in street name:

1. The investor’s name is not listed on the official company records as a shareholder. Instead, the shares are held under the name of the investor’s brokerage firm, also known as the “nominee.”

2. This is a common practice when buying or selling securities, as it makes transactions easier and less expensive for investors.

3. While the investor still technically owns the securities, the brokerage firm is responsible for keeping track of them and handling certain administrative tasks, such as voting on corporate matters.

4. Securities held in street name can also provide investors with more anonymity, as their personal information is not on record with the company whose stock they own.

In summary, holding securities in street name allows for a more convenient and cost-effective way of buying and selling securities while still maintaining ownership and some control over the investment.

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