Who is the owner of the stocks when you buy them?


When you buy or sell securities with a broker, such as Passfolio Securities, your name is rarely actually on the stock certificate. Instead, it is held in "street name". What this means is that the broker holds the stock on behalf of the customer. But don't worry, this is standard in the US and you still own the shares. Even though the stock is held by the broker, you are assigned with all ownership rights and registered as the beneficial owner of the stock, which means that every dividend and income that comes from the stock is yours.

It's important to note though, that holding the stock in street name is not compulsory, and you can request to have the stock registered in your name. However, holding stock certificates is not advisable and it does not change the beneficial owner's rights and it makes trades more complicated, also incurring in extra fees.

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