Reader Question: “Broker Held”

I received the following question today from Hilary:

Date: Mon, 15 Aug 2005 09:29:08 -0500 [10:29:08 AM EDT]
From: Hilary
Subject: Question RE: “broker held”

Hi George,

I hope you don’t mind one more question, as I’m just learning the jargon associated with
trading. I use etrade instead of a more traditional broker for trading. When you list
on your website the details of going private transactions, you often have a line about
“broker held shares.” What’s the alternative? If I use etrade, are my shares held in my
name or are they broker held?”

I appreciate your help. Happy 1-year anniversary!

Take care,

My response to Hilary was as follows:

Hi Hilary,

Your shares at Etrade are held in “” according to Wall Street jargon. I tried to make this a bit more understandable by referring to this as “broker held” shares.

The alternative is when shares are owned at the “record holder” level. This means that the shares have your name on the certificate and often means that you have received delivery of the physical stock certificate.

If I indicate that “Broker Held Shares: Must request shares be registered in your name,” then you must ask Etrade to register the shares in your name in order to qualify for a cash offer. Etrade will probably charge you a fee for this service, and then you are responsible for filling out and paperwork and sending the shares in when a going private transaction is finalized.

One thought on “Reader Question: “Broker Held”

  • August 16, 2005 at 10:47 am

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