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Holder Of Record

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The holder of record is the name which appears on a company's records as the registered owner of stock. The holder of record can be an individual, or a business entity. The holder of record is not necessarily the individual who controls the stock (this is often true when the holder of record is a minor or when there are tax considerations), but dividends and other payments due on shares of stock are paid only to the holder of record. When the holder of record is known, the security is said to be a registered security. If the holder of record is unknown (not recorded), then the security is said to be a bearer security and may be freely traded by whoever possess it.



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