Decision Makers — Physical Security
What are physical securities?
Physical securities, also known as paper securities or tangible securities, are financial instruments that exist in a physical, paper form. These documents represent ownership or investment in a particular asset or security. In the context of investments, physical securities contrast with electronic or digital securities, which are held and transferred electronically through computerized systems.
Physical securities can take various forms, including:
Stock Certificates: These are physical certificates issued by a company to its shareholders, indicating their ownership of a specific number of shares in the company.
Bond Certificates: These certificates include details such as a bond's face value, interest rate, and maturity date.
Mutual Fund Certificates: Some older mutual funds issued physical certificates to their investors, representing their ownership of shares in the fund. However, most mutual funds now operate electronically, and investors receive statements or confirmations of their holdings.
Commodities: In some cases, physical commodities such as gold, silver, or other precious metals are represented by physical certificates or receipts.
Why would companies want to speak with physical securities decision makers?
Companies may want to speak with physical securities decision makers for several reasons, particularly if they issue physical securities, such as stock certificates or bond certificates. These decision makers are typically individuals or entities responsible for managing and overseeing the issuance, transfer, and redemption of physical securities.
Some reasons why companies might want to engage with these decision makers include:
Ownership Verification: Companies must communicate with decision makers to ensure that the rights and privileges are granted to the rightful owners.
Transfer of Ownership: Companies may need to coordinate with these decision makers to update their shareholder or bondholder records accordingly.
Dividend and Interest Payments: Companies may have to communicate with physical securities decision makers to ensure that dividend payments to shareholders or interest payments to bondholders are made to the correct individuals or entities.
Communication of Corporate Actions: These decision makers can help ensure that communications reach the right parties.
Compliance and Regulatory Matters: Companies may need to work with them to maintain compliance with securities laws.
Redemption and Repurchase: When a company wants to redeem bonds or buy back its own shares, it must coordinate with the decision makers to ensure a smooth process.
Shareholder Services: Decision makers can provide services related to the administration and management of physical securities, including handling lost or stolen certificates and facilitating estate settlements for deceased shareholders.
Who are these decision makers?
Physical securities decision makers are individuals or entities responsible for managing and overseeing various aspects of physical securities, such as stock certificates or bond certificates. These decision makers play a critical role in administering and facilitating the issuance, transfer, and redemption of physical securities.
These decision makers can include the following:
Transfer Agents: Ensure that share ownership changes are properly recorded when shares are bought, sold, or transferred. Transfer agents also distribute dividends, proxy statements, and other shareholder communications.
Registrars: Work in conjunction with transfer agents and are responsible for keeping a record of the registered owners of a company's securities. They ensure that the names and contact information of shareholders are up to date and that the appropriate individuals or entities receive shareholder communications.
Trustees or Fiscal Agents: Oversee the payment of interest and principal to bondholders, monitor compliance with the terms of the bond indenture, and ensure that the issuer fulfills its obligations to bondholders.
Custodians: Protect the physical certificates from loss, theft, or damage. Custodians may also facilitate the transfer of securities when they are sold or transferred.
Securities Depositories: Help manage electronic records and transfers of ownership.
Escrow Agents: May hold physical securities as part of an escrow arrangement until specific conditions are met or legal obligations are fulfilled.
How can I get in touch with these types of physical securities decision makers?
Zintro can help. Zintro is a market research expert network that gives companies access to decision makers and industry experts to help organizations get insights into the challenges these leaders face, industry trends, technological advancements, and opinions. By speaking with in-industry experts, you can get a front-row view into the true needs of physical securities leaders.
