Buying stock through a DRP question?
Answers:
The stock is actually held in what is referred to as "street name", meaning that it is allocated to Computershare. Computershare keeps track of who owns all of the stock. there is no need to have it registered or certificated. If you move your account, you can just roll it to a different broker who will also have it registered in street name, but with their name instead of Computershare.
Holding stocks in street name has several advantages over certificated shares. They are easier to trade; you don't have to worry about losing the certificate; you don't have to worry about damage to the certificate. All of the brokerages carry heavy insurance to compensate you if something were to happen to their recordkeeping. In short, street name is a safer and more convenient way to own stock.
No, but once you do not want to do this anymore, then request them to be certificated. I have dividend re-investment on several of my stocks and it is great. Sometimes stock can be purchased at a discount
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