What is an official holder?
A registered holder is the name of the person who is the registered owner of a security and who has the ownership rights, benefits and responsibilities. The registered holder of a share generally has the voting rights of shareholders and receives dividends, if applicable. The registered holder of a bond owns the bond and receives principal and interest payments. When the owner sells the title, he or she ceases to be the owner of the file.
The registered holder can also correspond to the legitimate owner of other securities such as raw materials and derivative contracts.
Understanding document holders
The securities can be issued in “registered” or “bearer” form. The registered form means that the issuing company itself keeps records of the owner of a security and sends payments to him by post. The bearer form means that the security is traded without any document of ownership; physical possession of the warranty is the only proof of ownership. Bearer securities have been largely removed due to their potential for misuse. Currently, most of the securities are issued in registered form.
A registered holder is also separate from a beneficial owner or holder, whose assets are held in a brokerage account or by a bank or nominee in the name of the street. But as shareholders of a company, registered holders and beneficial owners will have the same rights with regard to voting, receiving dividends and communications, etc., the only difference being the way in which the rights of votes are cast and dividends or communications received. Although holding street names is the norm, some investors still prefer to hold physical certificates in their own name. Because it is more expensive to transfer ownership this way, brokers will charge a higher rate for inconveniences.
Key points to remember
- A registered holder is the name of the person who is the registered owner of a security and who has the ownership rights, benefits and responsibilities.
- The registered holder of a share generally has the voting rights of shareholders and receives dividends, if applicable.
- Registered holders may be entered in a share register or a similar type of general ledger.
Registered holders may include a shareholder register, a list of active owners of the shares of a company, updated on a continuous basis. The share register requires that each current shareholder be registered and includes the name, address and number of shares held by each person. More. The register can even detail the occupation of the holder and the price paid. The share register is fundamental for the examination of the ownership of a company.
The shareholder register differs from a shareholder list in that the shareholder list is only updated once a year, while the register keeps track of the current partial owners of a business.