What is Holder Of Record?

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A holder of record is the name of the person who is the registered owner of a security and who has the rights, benefits, and responsibilities of ownership.

Definition

Holder registration refers to the name of the person who is the registered owner of a security and has ownership, benefits, and responsibilities. It is a crucial process in the securities market for confirming and recording the identity of security holders, ensuring they can legally enjoy the related rights of their securities.

Origin

The concept of holder registration originated with the development of the securities market, particularly in stock and bond trading. As the securities market matured, the holder registration system was gradually improved to ensure transparency and legality in transactions. Initially, holder registration relied on paper records, but with technological advancements, electronic registration systems have become widespread.

Categories and Features

Holder registration can be divided into nominal holder registration and actual holder registration. Nominal holder registration refers to securities registered under the name of an agent or custodian, while actual holder registration means securities are directly registered under the final holder's name. The advantage of nominal holder registration is ease of management and trading, but it may lead to unclear holder rights; actual holder registration ensures direct control and clear rights for the holder.

Case Studies

Case 1: In the issuance of Apple Inc.'s stocks, holder registration ensures each shareholder's rights and voting power. Through holder registration, Apple can accurately record and manage shareholder information, ensuring the smooth conduct of shareholder meetings. Case 2: In the bond issuance by Ping An Insurance, holder registration helps the company identify and contact bondholders, ensuring interest payments and principal repayment upon bond maturity.

Common Issues

Common issues investors face during holder registration include rights being compromised due to inaccurate information and unclear rights under nominal holder registration. To avoid these issues, investors should ensure the accuracy of registration information and understand the difference between nominal and actual holders.

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