Replies to post #110517 on Lehman Brothers Financial SA (LEHNQ)

[jwnoble3]

FYI re stock transfers:

Cede & Company, also known as Cede and Co., is a specialized financial institution in the United States. It plays a crucial role in processing transfers of stock certificates on behalf of the Depository Trust Company (DTC). Let’s delve into some key points about Cede & Co.:

Purpose and Function:
Cede & Co. processes stock transfers for the DTC, which serves as the central securities depository for the U.S. National Market System (including the New York Stock Exchange and Nasdaq).

Investors and companies give up their stock ownership to Cede & Co., which acts as an intermediary.
Most publicly issued stocks in the U.S. are technically owned by Cede & Co., not individual investors.
Securities held at the DTC are registered in Cede & Co.‘s nominee name and recorded on brokerage firms’ books for beneficial owners1.
Ownership and Structure:

Cede & Co. owns a staggering 83% of all issued stocks in the United States.

The remaining 17% is directly owned by registered holders through the direct registration system.
Cede & Co. was founded in 1996 specifically to efficiently process stock transfers for the DTC.
Its name, “Cede,” is derived from “certificate depository” as a shorthand1.
Nominee Role:

Securities managed by the DTC are deposited with or on behalf of the DTC and registered in the name of Cede & Co. as the nominee.
Cede & Co. holds the record of ownership for these securities.

It operates as a separate legal entity from the DTC and is structured as a partnership.
The partnership structure allows general partners to order stock transfers without additional corporate resolutions2.
Location:

Cede & Co. is headquartered at 55 Water Street, Suite Conc4, New York, New York 100411.
In summary, Cede & Co. plays a pivotal role in the complex world of stock ownership and transfers, acting as the custodial nominee for securities managed by the DTC. Its name reflects its function as a certificate depository, even though most investors don’t directly hold property rights in stock but rather have contractual rights tied to Cede & Co.