Definition
Holding shares in street name means the shares are registered in the name of your broker (or, more precisely, DTC’s nominee Cede & Co.) rather than in your own name. You are the beneficial owner; the broker / DTC is the record holder.
Why this is the default
The vast majority of U.S. public-company shares are held this way. Street-name holding:
- Enables electronic settlement through DTC
- Avoids physical certificates
- Lets brokers handle dividends, corporate actions, proxies on behalf of clients
Tender offer implications
Street-name holders can’t tender directly. They submit instructions to their broker, who tenders on their behalf via DTC. This means:
- Broker cutoff times are typically earlier than the formal offer expiration
- Holders rely on the broker to forward offer materials promptly
- Transfer of street-name shares for tender is electronic — no certificates to handle
Distinction
Direct registration (DRS) registers shares directly to the investor on the company books, eliminating the broker as record holder. Less common than street name but supported by most U.S. public companies.