Street Name Law and Legal Definition
Street name in the context of investing refers to securities held in the name of the stock broker or brokerage rather than the investor's name. This may occur when securities are bought on margin or just when the investor prefers such an arrangement. The investor's firm will keep records showing the investor as the real or "beneficial owner." The investor will not get a certificate, but will receive an account statement from their broker on at least a quarterly and annual basis showing their holdings.
The advantages of having securities held in "street name" include:
* Because the investor's securities are already with the broker, the investor can place limit orders that direct your broker to sell a security at a specific price.
* The investor's brokerage firm is responsible for safeguarding the securities certificates so the investor doesn't have to worry about their securities certificates being lost or stolen.
* The brokerage firm may keep the investor informed of important developments, such as tender offers or when bonds are called.
* It is easier to set up a margin account.