Securities Ownership

This White Paper outlines how you, the investor, own and hold securities electronically through your broker-dealer, how your securities account is covered by multiples layers of protection, and how you enjoy significant access to the securities markets and other benefits that in the past had only been available to investment professionals. Holding securities electronically through your broker-dealer protects your investments similar to cash held in your bank account –but also provides some additional benefits.

This includes:

• Laws that:
  • clearly state you are the owner of the securities
  • prevent the broker-dealer from doing anything without your consent, except holding and safeguarding your securities
  • place your securities beyond the reach of the broker’s creditors
  • mandate insurance similar to that which protects your bank account
  • nearly eliminate the risk of theft, damage, or other loss
  • Important service offerings such as the ability to transact or check your account online in real time from a computer, cell phone, or other device
• Offers free or low-cost trade commissions and/or other transaction processing fees
• Allows easy adaptation of new and evolving technologies, and
• Plays a critical role in ensuring that securities markets are reliable and efficient.