Holder of Record
What it is:
How it works/Example:
Let's say John Doe buys 100 shares of Company XYZ. His brokerage firm executes the trade and makes him the holder of record.
Why it matters:
Being a holder of record gives the shareholder the rights and responsibilities that come with ownership: the right to vote, the right to sell the security, and the right to receive dividends, interest payments or other distributions. Dividends in particular, are only paid to holders of record.