What is registered ownership or a shareholder of record?
Registered ownership occurs when the beneficial owner of the security is registered (or recorded) on the books of a corporation. The registered shareholder is considered the “shareholder of record” and holds shares in his or her own name (rather than having a broker or other financial institution hold them in “street name,” as discussed below). This form of ownership is also known as “direct” ownership. The shareholder of record is known to the corporation as one of its shareholders. Shareholders of record receive all corporate communications, dividends, annual reports, and proxy material directly from the company, and ownership comes in one of two forms: physical certificates or book-entry shares. When investors purchase stock through a broker, to become a registered owner the investor must specifically direct the broker to register the shares with the corporation. 2.
