Stockholder of record definition
/What is a Stockholder of Record?
A stockholder of record is the registered holder of shares, as stated in the shareholder register of the issuer. The shareholder register contains the name and address of each shareholder, as well as the number of shares held. The stockholder of record has the following characteristics:
The stockholder of record has the rights and responsibilities of ownership.
The issuer pays dividends to the stockholders of record.
Stockholders of record have voting rights in regard to such matters as the election of board members and the sale of the issuer to an acquirer.
Proxy materials are sent to the stockholder of record.
Once a stockholder sells the shares, the person or entity is no longer classified as a stockholder of record.
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Examples of Stockholder of Record
Here are three examples of a stockholder of record:
An individual investor. John Doe owns 500 shares of Apple Inc. (AAPL) and is listed as the registered shareholder in Apple’s shareholder register. He receives dividends directly from the company and has voting rights at shareholder meetings.
A trust. The Smith Family Trust holds 1,000 shares of Microsoft Corporation (MSFT) and is registered as the stockholder of record. The trustee manages these shares on behalf of the trust beneficiaries.
A brokerage firm (as a nominee holder). A financial institution like Charles Schwab & Co. holds shares of Tesla, Inc. (TSLA) on behalf of multiple investors. In this case, Schwab is listed as the stockholder of record, while individual investors are beneficial owners.
Terms Similar to Stockholder of Record
A stockholder of record is also known as a shareholder of record, a registered holder, or a record holder.