Book entry is a system of tracking ownership of securities where no certificate is given to investors. In the case of book-entry-only (BEO) issues, while investors do not receive certificates, a custodian holds one or more global certificates. Dematerialized securities, in contrast are ones in which no certificates exist, instead, the security issuer or its agent keeps records, usually electronically, of who holds outstanding securities.
Most investors who use an online broker or even a regular full-service broker will have their shares held in book-entry form. This is generally convenient, as one does not have to preserve physical stock certificates, and can buy/sell securities without turning certificates in or having new ones issued. Also, replacement costs for certificates are high in case one loses them, while book-entry ownership can never be lost thanks to technological backups.
Read more about Book Entry: Direct Registration System
Famous quotes containing the words book and/or entry:
“The trouble with writing a book about yourself is that you can’t fool around. If you write about someone else, you can stretch the truth from here to Finland. If you write about yourself the slightest deviation makes you realize instantly that there may be honor among thieves, but you are just a dirty liar.”
—Groucho Marx (1895–1977)
“When women can support themselves, have entry to all the trades and professions, with a house of their own over their heads and a bank account, they will own their bodies and be dictators in the social realm.”
—Elizabeth Cady Stanton (1815–1902)