DD Support Board and Research Team

[patchman]

Cede and Company is the central depository for all sharers. When shares are issued in street name they are issued to Cede and Co. in the name of Bank XYZ. In doing so it allows the shares to be electronically traded without the expense of going back and forth to the transfer agent every time.

Bank A puts in 1 Million shares and has them issued to Cede and Co. in their name.

Bank B, Bank C, Bank D....all do the same.

But the next day Bank A sold 100,000 shares to a customer of Bank B. With all the shares issued to Cede and Co. they can electronically transfer 100,000 shares into the acciount of Bank B without pulling out a Cert and having teh TA re-issue.

Once shares are in Cede and Co. they only leave when a request for physical shares is made. for most securities you would expect to see near 100% in the name of Cede and Co.