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Revision as of 03:06, 19 April 2007 by 71.201.206.153 (talk) (Details)(diff) ← Previous revision | Latest revision (diff) | Newer revision → (diff)Book entry is a system of tracking ownership of securities where no certificate is given to investors. In the case of book-entry-only (BEO) issues, while investors do not receive certificates, a custodian holds one or more global certificates. Dematerialized securities, in contrast are ones in which no certificates exist (instead, the security issuer or its agent keeps records, usually electronically, of who holds outstanding securities).
Most investors who use an online broker or even a regular full-service broker will have their shares held in book entry. This makes it convenient as you do not have to preserve your physical stock certificates and can buy/sell without turning them in or getting issued new ones. Also, replacement costs for certificates are high in case you lose them, while book entry ownership can never be lost thanks to technological backups.
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