Direct Registration System, The (DRS)

Definition:

Established by the Depository Trust Company, The (DTC), it is a method of recording entitlement securities in book-entry form which enables a Transfer Agent to maintain those securities electronically in records of the issuer on behalf of the relevant security holder without the need for a physical share or stock certificate to be issued. The DRS method of recording is commonly used in the United States and securities held in DRS have all the traditional rights and privileges of securities held in certificated form.

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