Street Certificate

When a broker holds securities on behalf of the client and does not transfer or register it to the client’s name, it is said to be a ‘street certificate’. The name appearing on the stock or bond certificate may be that of the broker, but the ownership remains with the person or entity who paid for the securities. This helps in quicker electronic trading and reduces costs. For retail investors, ‘street certificate’ securities are considered safe, but for large investors, direct registration will make sense. A brokerage may, in fact, allocate the shares for a small retailer from its own inventory to make the trade quick.