Clients are the beneficial owners of the securities held in their account. However, U.S. shares are generally held in “street name,” meaning that they are not registered directly in the client’s name on the books of the issuer.
Instead, the securities are held in book-entry form through the broker, custodian, or nominee structure used for the account. The broker’s records show that the client is the beneficial owner of the securities.
This structure is commonly used in the U.S. market and allows securities to be held and transferred electronically.
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