Menu

Stockholder Of Record for Dummies

noun


What does Stockholder Of Record really mean?

39 1
39
Hey there! I'm really excited to explain to you what "Stockholder of Record" means. Don't worry if it sounds a bit complex at first, I promise we'll break it down into simple, bite-sized pieces so you can understand it fully.

So, let's start by understanding what a "stockholder" is. Imagine you and your friends decide to start a lemonade stand together. You contribute some money to buy ingredients, and in return, you receive something called a "share" in the lemonade stand. This share represents your ownership in the business. In the business world, similar shares are called stocks. When we talk about a "stockholder," we mean someone who owns stocks or shares in a company.

Now, let's move on to the phrase "of record." Imagine you have a favorite song that you really want to remember. So, you write down the name of the song and the artist in your special notebook. When you do that, you have a record of the song. In the world of stocks, a "stockholder of record" means a person or entity whose name is officially listed as the owner of certain stocks or shares.

You might be wondering why keeping records is important. Well, let's say our lemonade stand business gets really popular, and we decide to sell shares to the public so others can invest in our success. To keep track of who owns these shares, the company maintains a list called a "stockholder record." This record includes the names and contact information of all the people who own the company's stocks.

So, when we use the term "Stockholder of Record," we are referring to the specific individual or entity whose name appears on the official record as the current owner of certain stocks. It's like being the officially recognized owner of a piece of the lemonade stand.

To summarize, "Stockholder of Record" means the person or entity whose name is officially listed as the owner of specific stocks or shares in a company. Just remember, it's all about being the recognized owner and having your name on the official record, like having your favorite song written down in your special notebook.

Revised and Fact checked by James Thompson on 2023-10-28 20:30:53

Stockholder Of Record In a sentece

Learn how to use Stockholder Of Record inside a sentece

  • If you own shares of a company's stock and your name is directly listed on the company's official records as the stockholder, you would be considered a stockholder of record.
  • Imagine you bought some shares of your favorite company's stock and after the purchase, your name was officially recorded by the company as the owner of those shares. In this case, you would be known as a stockholder of record.
  • When a company distributes dividends to its shareholders, they usually send the money or additional shares to the stockholders of record, who are the individuals listed in the company's records as the official owners of the shares.
  • Let's say you inherited some stock shares from your parents. After proper documentation and submission, when the company officially recognizes you as the new owner of the shares, you become a stockholder of record.
  • If you decide to sell your shares of a company's stock, you need to inform the company so they can update their official records and remove your name as a stockholder of record.

Stockholder Of Record Hypernyms

Words that are more generic than the original word.