Intro to the Stock Market
Originally, investors received stock certificates when they bought shares of stock. The paper certificate would state the investor's name as well as the number of shares and any other important information. Because approximately three billion shares are traded every day, paper certificates have become impractical. Today, the vast majority of stock purchases are recorded electronically in book entry form. This way, when the stock changes hands, one investor's name can easily be changed for another on the electronic record.
You can register your securities in either street name or through direct registration when recording your investments in book entry form.
About 75% of all electronic registrations are done in street name, meaning the securities are registered in the name of your brokerage firm. Though you don't receive a paper certificate, you do receive periodic statements, interest and dividend payments (if the company pays dividends), annual reports and proxy statements. Furthermore, your securities are insured up to $500,000 total equities and cash, including $100,000 for most cash claims, against the possible bankruptcy of your firm through the Securities Investor Protection Corporation (SIPC). Keep in mind that only cash used for investment purposes is covered. For example, customers who use their money market as it is intended, to move money in and out of investments, would be covered by SIPC, but those who use the account like a checking account would not be covered.
With direct registration, securities are registered directly on the books of the issuer or its designated transfer agent. Very few listed securities are eligible for direct registration.
| Scottrade Bank: Certificate of Deposits Menu |
| ScottradeELITE: Placing a Stock or ETF Order in ELITE |
| Orlando: Timely strategy and commentary from industry experts | 11/12/11 |
With more than 500 branch offices nationwide, Scottrade offers live events in neighborhoods all over the country. Visit your local Scottrade office for a cozy small-group Branch Seminar, or get together with Scottrade customers from your area at our popular User Summits.
Browse All Live Events >Stream live, interactive presentations right to your computer! Check back every week for new Live Webinars on a variety of topics including:
- Market analysis
- Basic & advanced orders
- Research tools
Education meets interaction in the Scottrade Community. Join Scottrade customers from all over the country as you exchange information, ideas and trading strategies in a comfortable online learning environment.
Interact with Scottrade customers and product specialists. Share your thoughts and learn from others. Grow as an investor. Join our community today!
Learn More About the Community >



Back to Intro to the Stock Market