What does 'street name' refer to in the context of securities registration?

• A. Registered in the name of a dealer member
• B. Held in a financial institution's vault
• C. Owned by multiple investors
• D. Recordkeeping in digital format

Answer: (A)

In the context of securities registration, 'street name' refers to securities that are registered in the name of a broker-dealer or other financial institution rather than in the individual names of the investors who actually own them. This practice allows for easier transfer of ownership and simplifies the process of buying and selling securities, as the broker can handle transactions more efficiently on behalf of multiple clients.

When investments are held in street name, it also enables the broker to facilitate corporate actions, such as dividend payments or voting rights, on behalf of the investors without each individual needing to handle the securities directly. This system has become a standard practice in the financial industry, particularly in the context of public securities, as it promotes liquidity and streamlines trading processes.

The other options do not accurately describe the concept of street name. For instance, while securities held in a financial institution's vault or owned by multiple investors might involve associated processes, they do not specifically pertain to how registration is handled in the street name format. Similarly, recordkeeping in digital format is a method used in various aspects of finance but does not define 'street name' registration.