What is Safekeeping?
Safekeeping is adescribing a financial institution's responsibility to keep clients' assets in a safe area.
How Does Safekeeping Work?
Similarly, John Doe's brokerage firm has a responsibility to keep thein his account separate from the brokerage firm's own and house accounts.
Why Does Safekeeping Matter?
One of the fundamental purposes of the entire banking industry is safekeeping. That is, they provide people with a safe place to keep theiruntil they need it.
A safekeeping certificate is a document that proves that a person owns a security or a CD. American Depository Receipts (ADRs) are some of the most common forms of safekeeping certificates. Issued by U.S. banks, American Depository Receipts (ADRs) are certificates that represent NYSE, AMEX or Nasdaq).of a foreign owned by the issuing bank. The foreign shares are usually held in custody overseas, but the certificates trade in the U.S. Through this system, a large number of foreign-based companies are actively traded on one of the three major U.S. markets (the