Paper Certificates or Street Ownership Is one safer
Below is a MRR and PLR article in category Finance -> subcategory Other.
Paper Certificates vs. Street Ownership: Which is Safer?
Summary
When you purchase shares in a publicly traded company, you become a shareholder and may receive a stock certificate, if the company issues them. Historically, these certificates have often been treasured as collectible items or memorabilia because companies would invest effort into crafting visually appealing documents.
Article
When you invest in a publicly traded company, you become a shareholder and may receive a stock certificate, if the company issues them. In the past, these certificates were often crafted as attractive documents, resembling a university diploma, complete with intricate designs and the company’s logo. Despite their aesthetic appeal, what truly matters is the ownership rights they represent.
If you own company stock, your ownership is typically recorded by the company. This means that even if you lose your physical certificates, you can still verify your ownership through the company's shareholder records. Nevertheless, it's wise to store stock certificates securely, such as in a bank’s safe deposit box, to protect against theft, fire, or other potential disasters.
Today, most stockholders never physically see their certificates because ownership is usually maintained in what's known as "street name." This method involves buying stock through a licensed broker, who handles the transaction electronically rather than issuing paper certificates. When you purchase stock, your broker acquires it from traders on major exchanges like the NYSE or NASDAQ and records it in your account. Upon selling, the account updates accordingly. Essentially, your broker holds the stocks but reserves them under your name and the brokerage's Wall Street firm?"hence the term "street name."
One of the primary reasons stocks are now mostly kept in street name is convenience. Receiving physical certificates can take weeks, complicating quick sales during that period. Similarly, selling stocks requires timely certificate delivery to your broker. Given the fast-paced nature of the stock market, most investors prefer the speed and flexibility of electronic records maintained by their broker’s accounting department. This approach allows for agile responses to market changes and price fluctuations.
You can find the original non-AI version of this article here: Paper Certificates or Street Ownership Is one safer .
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.