Listen to a Business English Dialogue About Stockholder of record
Jade: Hey Ronald, do you know what a stockholder of record means in business and finance?
Ronald: Hi Jade, yes, a stockholder of record refers to the individual or entity whose name is officially registered on the company’s books as owning shares of its stock.
Jade: That’s right. Being a stockholder of record entitles you to certain rights, such as voting at shareholder meetings and receiving dividends.
Ronald: Exactly, Jade. It’s important for companies to maintain accurate records of their stockholders to ensure proper communication and distribution of corporate actions.
Jade: I’ve heard that being a stockholder of record also allows you to participate in corporate decisions and influence company policies. Is that true?
Ronald: Yes, Jade. Stockholders of record have the right to vote on important matters, such as electing the board of directors and approving major corporate decisions.
Jade: So, Ronald, how does one become a stockholder of record?
Ronald: To become a stockholder of record, you typically need to purchase shares of a company’s stock through a brokerage account or directly from the company and ensure that the shares are registered in your name.
Jade: That makes sense. It’s essential for investors to understand their rights and responsibilities as stockholders of record to effectively participate in the governance of the companies they invest in.
Ronald: Absolutely, Jade. Being a stockholder of record comes with both privileges and responsibilities, and it’s important for investors to stay informed and actively engage with the companies they own shares in.