Listen to a Business English Dialogue About Holder of record
Evelyn: Hey John, have you ever heard of the term “holder of record” in finance?
John: No, I haven’t. What does it mean?
Evelyn: The holder of record is the individual or entity listed as the owner of a security, such as stocks or bonds, on the company’s official records.
John: Oh, I see. So, it’s like being officially recognized as the owner of the security?
Evelyn: Exactly! The holder of record is entitled to receive dividends, interest payments, and other benefits associated with ownership of the security.
John: That sounds important. How does someone become the holder of record?
Evelyn: To become the holder of record, an individual or entity typically needs to purchase the security and have their ownership registered with the company or its transfer agent.
John: Got it. Are there any implications of being the holder of record?
Evelyn: Yes, being the holder of record gives the individual or entity voting rights at shareholder meetings and the ability to participate in corporate actions such as mergers or stock splits.
John: I see. Thanks for explaining, Evelyn. Holder of record seems like a key concept in securities ownership.
Evelyn: No problem, John. It’s important to understand your rights and responsibilities as an investor.