Which of the following best describes street certificates?

Which of the following best describes street certificates?

• A. Registered in the name of the actual owner
• B. Issued under regulatory approval
• C. Held in street name by dealer members
• D. Personalized for individual investors

Answer: (C)

Street certificates are securities held in the name of a brokerage or financial institution rather than in the name of the actual investor. This practice allows for easier transfers of ownership and simplifies the processes involved in buying or selling securities. When securities are held in street name, the dealer or brokerage facilitates transactions on behalf of the investor, making it convenient for both parties.

This arrangement contrasts with registration in the name of an individual owner, which can restrict transferability and may entail additional administrative burdens. While regulatory approval is an important aspect of the securities industry, it does not specifically pertain to the definition or functionality of street certificates. Personalization for individual investors suggests a different type of asset structure, focusing on individual ownership rather than the more common practice of using street names for ease of trade in the market.