Cede & Co: DTC automates the sale of securities by holding securities in “street name.” As the country’s central depository, DTC holds in custody an estimated 90 percent of all U.S securities. These securities are registered with you, the issuer, or your transfer agent in DTC’s nominee name, Cede & Co. (pronounced “see dee”), also known as “street name.” DTC keeps track of its bank and broker/dealer customers who hold the positions on behalf of their clients. The name of the actual investor or “beneficial owner” is recorded on the books of the investor’s bank or brokerage firm. When an investor sells securities, the shares are debited electronically from the bank or broker/dealer’s account at DTC and credited to the DTC account of the firm whose client bought the securities. The banks or brokerage firms then update their own books to reflect the change in ownership.
