Know the Facts About Direct Registered Shares
As an individual investor, there are several ways in which you can hold securities. Many investors hold them in "street name." This means that the shares are registered with the issuer under the name of an intermediary, typically your brokerage firm, that maintains electronic, "book-entry" records showing you as the real or "beneficial" owner.
Alternatively, you might be able to choose to have the actual physical stock or bond certificate sent to you for the shares you've purchased. In this case, the securities are registered in your name on the issuer's books, but you're responsible for safeguarding the physical certificate. However, not all securities are available in physical form.
A third way to hold securities is through direct registration. This means that the securities are registered directly in your name on the issuer's books and are held for you in book-entry form by either the issuer or its transfer agent. The transfer agent -- hired by the issuer to maintain shareowner records -- must be eligible and admitted to the Direct Registration System (DRS) by the Depository Trust Company (DTC).
Source Fool.com
