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That's very similar to what happens with stocks. When you buy a stock, it's Cede & co who actually own the physical certificates that transfer rights. There's a
by AlotOfReading 3y ago
That's very similar to what happens with stocks. When you buy a stock, it's Cede & co who actually own the physical certificates that transfer rights. There's a complicated web of contractual obligations between them and other DTCC companies that exists to give you essentially the same rights as if you were a true stockholder, but it's all being done "on your behalf" in a legal sense.
- weard_beard 3y agoUnless you directly register your stock through a DRS transfer to the issuing agent for the company. This agent manages stock issued to insiders and employees as well but any stock holder can truly own their stock the same way the CEO of the company does. It’s a pain, takes forever, and brokers will play dumb and try to prevent it, but they legally must allow you. Generally only worth it if you intend to hold your stock for some time (which you should)
- Scoundreller 3y agoAlso sometimes you can start them directly with a company (bypassing brokers entirely). Others will let you send a cheque and buy more. Informal communities exist to buy that first share from another individual so you can continue. Sometimes all at no charge. Was handier back when brokerage commissions were a thing (and a lot higher). Did this with GE a while ago (worked out for me!)
- dboreham 3y agoExactly my point. In the Schwab case they don't get to buy yachts with your ATT stock.