Registered Security
There are two connotations where the term "registered security" comes up in the financial world. In one, the holder of a bond has their name registered. They no longer have to present a coupon to receive their regular payments. Their name is attached to the security, so the identity of the holder is on file. It's like when the teller at your bank starts to recognize your face and you no longer have to show ID to withdraw money. Only it's a more formalized process. The other kind of registered security refers to regulatory authorities. The company issuing the security (the stock or the bond) has filed the paperwork to have it registered with the SEC, or any other relevant agency.
If you venture down a dark alley, and there's a guy there selling stock out of the back of his van, those might not be registered securities. However, if you bought five shares of AAPL on the NASDAQ, those shares do count as registered securities.
Related or Semi-related Video
Finance: What does securitized mean?1 Views
Finance allah shmoop What does securitized mean Well it happens
when you make a security out of clay or mortgage
bonds or debt backing two hundred thirty nine airplanes Well
basically when you securitize something you're creating one large thing
out of many small things to create liquidity and broader
investment interest and flexibility and given category So think about
the most famous securitisation in history Collateralized mortgage obligations or
c M o's Where in a bunch of clever wall
street people securitized subprime or high risk mortgages created that
cmo security and then sold the crap out of it
to investors And then bad things happened when an investor
reviews one mortgage investment like a manny here Great guy
Excellent golfer manny here is a gardener He makes forty
five grand a year and now well meet His wife
has moral The substitute school teacher She makes thirty grand
a year Well they have three kids and for somehow
able to get a loan for seven hundred fifty thousand
dollars to buy this freaking amazing mansion Had one investor
looked at this transaction while they would have realized that
something was off Like how can a total family household
income of seventy five grand be able to pay ten
times that number in a mortgage Well a fudge here
Ah fudge there a teaser rate for six months a
sickly old uncle who promised to die soon and and
yeah so when loans get securitized and it usually is
loans are debt that gets securitized like this The theory
was that there'd be less volatility less risk when lots
of them were pooled together in one package But in
fact there was on ly perversely extreme incentive to write
loans from the various lending institutions writing those loans And
there was poor management and poor governance in new well
poor math and also porsche moving So the subprime mortgage
securitized behemoth blew up famously and almost destroyed the american
financial system Other things get securitized as well For example
real estate holdings get securitized and what's called a reet
or real estate investment trust which puts in tow one
investing vehicle a whole bunch of usually aligned buildings like
think a package of old age homes or a package
of shopping malls or of office buildings or massage parlors
or whatever floats your boat well the process simply makes
one easily investable security out of lots of disconnected individual
investments and usually that's good for everyone Everyone but this 00:02:23.908 --> [endTime] guy
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