Definition

Noun: A registered security is a financial instrument, such as a stock or bond, for which the owner's name and details are officially recorded and maintained by the issuing company or its designated agent. This registration establishes legal proof of ownership.

Usage

This term is used in finance and investment contexts to describe a specific method of holding and transferring ownership of securities. It contrasts with "bearer securities," where possession of the physical certificate constitutes ownership.

Examples

Advanced Usage

• "Fully registered security": A security where both the principal and interest payments are recorded and sent directly to the registered owner, eliminating the need for physical coupons.
  • Most modern municipal bonds are issued as fully registered securities.

Variants and Related Words

• Bearer Security (n): The opposite of a registered security; ownership is determined by whoever holds the physical certificate.
  • Bearer securities are now rare due to regulations aimed at preventing financial crime.
• Registration (n): The act or process of recording ownership.
  • The registration of the stock transfer was completed by the transfer agent.

Synonyms

• Recorded security: A security with ownership documented on an official register.
• Book-entry security: A security where ownership is recorded electronically without issuing a physical certificate.

Notes on Meaning

The term specifically refers to the method of recording ownership, not the type of financial asset (e.g., stock, bond, note). It emphasizes the formal, recorded link between the issuer and the investor for purposes of communication, payment, and legal ownership.

Noun

1. a security whose owner's name is recorded on the books of the issuer (or issuer's agent)