What is a Stock Record?

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  • Written By: A. Leverkuhn
  • Edited By: Andrew Jones
  • Last Modified Date: 15 August 2019
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It can seem like a detail, but a stock record is actually a very critical piece of information used by a brokerage firm. The stock record is the information about who owns securities and where they are held, as well as exactly what positions are held. It is basically just comprehensive record keeping on individual investors who are clients of brokerage firms.

A brokerage firm is a company that helps investors to buy and sell stocks and other equities. The brokerage holds equities for investors, and every brokerage needs to keep accurate records. The stock record is the essential record that helps to keep everything straight.

New online brokerage accounts provide for even more kinds of third-hand stock acquisition. Good detailed online stock information has become extremely valuable, as individual investors can see what they are holding at a glance. Without good stock records, a lot of what investors can do now would not happen.

The U.S. Securities and Exchange Commission or SEC is the agency that governs the practices of brokerages and everything else that goes on relative to stocks and securities. The SEC has provided rules on record keeping for brokers that protects the average investor from some kinds of liabilities. The SEC also handles regulating some of the equities and products offered on markets to prevent some of the effects of periodic volatility, where the prices of equities can change suddenly.


A stock record for a complex brokerage account can include information about diverse currencies and foreign markets. FOREX or foreign market exchange investing has become common, where investors might have their money converted into foreign currencies, or held in foreign banks, as part of a long term investment strategy. This kind of investing also relies heavily on a good record. There are also complex accounts called “omnibus accounts,” where the broker has to keep track of which individual client investors own parts of a total bundle of equities.

Most investors know that getting involved in the stock market is not without risk. Investors should know the rules about what their brokerage firm offers, and how the stock record benefits them. Learning more about investment options can help those with invested capital to make good decisions about where their money goes and who they trust to handle the details of all of their financial transactions and overall strategies.


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