Replies to post #2266 on DD Support Board and Research Team

[wallymac]

http://www.dtc.org/dtcpublic/html/lob2/prod9/

http://www.early-retirement.org/forums/f44/stock-ownership-and-cede-and-company-42027.html

[The Rainmaker]

Cede is the float not held by people in their own name. It is also called shares held in Street name. Every single public companies float clears through CEDE, which is also known as the Depository Trust Company. DTC for short. That's where the slang term just DTC the shares came from, which is electronically transferring shares directly from the TA to someones brokerage account. So simply put, Cede is the clearing house for all free trading shares electronically entered into the trading system....versus paper certs held by people or corporations which can also be free trading. The shares in paper stock form don't become part of Cede's share count until that person deposits their stock cert into a brokerage account.

Who is Cede & Company Depository Trust?

So what are all those MMT shares at Cede, that's the MMTE float being held in street name by Cede.

[Risicare]

I'm afraid that letter doesn't clear things up a whole lot for me. If anybody has a good take and understanding about this please share.

thanks

It is a self interest based letter which I am suprised did not bring up naked shorting, that faulkingtruth site is conspiracy crap mainly. Nobody I have seen other than penny stock paranoids/scammers have any concern with the DTCC.


At this point my best guess is that people that don't want their shares to show up in their "street name" transfer the certificates to this company to hold for them?

It is part of clearing. The DTCC holds many, many trillions of dollars in securities but penny stocks use them as a boogey man in the NSS crap and have even sued them LOL
Street name refers to being held by your broker in their name, that is the norm. In a margin account you may be the beneficial owner (you derive the benefits) but really the broker owns the shares. Having the DTCC makes it easy to tally up who has what as there is a central depository for securities so clearing and settlement is easy.

[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.