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Simple English definitions for legal terms
holder of record
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A quick definition of holder of record:
Holder of Record: A person who owns stocks in a company and is listed as the official owner in the company's records is called a holder of record. This means that the company recognizes this person as the rightful owner of the stocks and is responsible for sending them important information and benefits related to their ownership.
A more thorough explanation:
A holder of record is a term used in the stock market to refer to the person or entity that is registered as the owner of a particular stock. This means that the holder of record is the one who is entitled to receive any dividends or other benefits associated with that stock.
For example, if John Smith owns 100 shares of XYZ Company and his name is listed as the owner on the company's records, he is considered the holder of record for those shares. If the company pays a dividend to its shareholders, John Smith would be the one to receive it.
Another example would be if a mutual fund holds shares of a particular stock. The mutual fund would be the holder of record for those shares, even though individual investors may have invested in the mutual fund.
Overall, the holder of record is the person or entity that is officially recognized as the owner of a particular stock and is entitled to any associated benefits.