The term Street Name is used to refer to customer securities and assets held under the name of the brokerage firm in a brokerage account holds. As opposed to the name of the individual who is the legal owner. As shown in the example below, the name on the stock certificate will not be that of the individual holder. However, the individual is still recognized as the real and beneficial owner of the securities and has the rights associated with them such as receiving dividend payments.
Street Name Example Usage
The following example is taken from a recent PREM14A filing with the SEC made on March 16, 2020 by Adesto Technologies (IOTS).
Q: What is the difference between holding shares as a stockholder of record and as a beneficial owner?
A: If your shares are registered directly in your name with our transfer agent, Computershare Trust Company, N.A., you are considered, with respect to those shares, to be the “stockholder of record.” If you are a stockholder of record, this proxy statement and your proxy card have been sent directly to you by or on behalf of Adesto.
If your shares are held through a brokerage firm, bank, trust or other nominee, you are considered the “beneficial owner” of shares of Adesto Common Stock held in “street name.” If you are a beneficial owner of shares of Adesto Common Stock held in “street name,” this proxy statement has been forwarded to you by your brokerage firm, bank, trust or other nominee who is considered, with respect to those shares, to be the stockholder of record. As the beneficial owner, you have the right to direct your brokerage firm, bank, trust or other nominee how to vote your shares by following their instructions for voting, and you are also invited to attend the virtual special meeting. However, because you are not the stockholder of record, you may not vote your shares at the virtual special meeting unless you obtain a proxy, executed in your favor, from your brokerage firm, bank, trust or other nominee giving you the right to vote your shares at the virtual special meeting.
This clearly shows how ownership of stock is viewed by the company and how the different terminology such as Street Name is used. Instructions are also given how investors can vote their stock in the upcoming virtual special meeting.
