book-entry security

(redirected from Book Entry Securities)

Book-Entry Security

A security where the certificate is not actually given to the holder. Instead, the holder is given a receipt and the information is held electronically. Book-entry securities have become more common as computers become more sophisticated and exchanges increasingly decide to close their trading floors. Book-entry securities are settled by the DTCC.

book-entry security

A security for which the purchaser receives a receipt rather than an engraved certificate. Although a certificate may exist in some instances, it is held in one location as ownership changes. The U.S. government, which issues Treasury bills only in book-entry form, uses this method as a way to reduce paperwork expenses. See also Depository Trust Company.

Book-entry security.

Book-entry securities are stocks, bonds, and similar investments whose ownership is recorded electronically rather than in certificate form.

When you sell the security, the records are updated, deleting you as an owner and adding the purchaser. This means you don't have to keep track of paper documents, and they can't be lost or stolen.

The Depository Trust & Clearing Corporation (DTCC) acts as a clearinghouse for book-entry securities.

References in periodicals archive ?
The transfer of certificated or book entry securities generally needs to be accompanied by a stock power with a form of signature guarantee.
The new system not only improves efficiency but also help in preventing mishandling of book entry securities of clients.
The Safekeeping or Custodial Function: This function requires the capability to receive and transmit book entry securities purchased under agreements to resell and to pledge collateral housed in a separate third party institution or Federal Reserve account through the Bank.
The new system while establishing a link between the National Clearing and Settlement System and the Central Depository System will not only bring in more efficiency but also assist in preventing misuse of book entry securities to a large extent.