Define: Stockholder Of Record

Business, Legal & Accounting Glossary

Definition: Stockholder Of Record



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Full Definition of Stockholder Of Record


The stockholder of record is the registered owner of a security. Dividends and other distributions are paid to the stockholder of record. Stock purchased through a brokerage typically lists the brokerage as the stockholder of record, with the account holder being the beneficial owner. When a dividend is paid, it goes to the brokerage as the stockholder of record. The brokerage, in turn, pays the dividend to the beneficial owner. If the shares are subsequently issued in certificate form, the account holder would then become the stockholder of record.

The distinction between a stockholder of record and the beneficial owner was created to smooth the process of trading stock. By listing brokerages as the stockholder of record, the party on the other end of the transaction can assume the trade is legitimate with minimal time and expense spent on verification.


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https://payrollheaven.com/define/stockholder-of-record/
Modern Language Association (MLA):
Stockholder Of Record. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/stockholder-of-record/.
Chicago Manual of Style (CMS):
Stockholder Of Record. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/stockholder-of-record/ (accessed: April 05, 2020).
American Psychological Association (APA):
Stockholder Of Record. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/stockholder-of-record/

Definition Sources


Definitions for Stockholder Of Record are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February, 2020