What are Direct Registration System “shares” also known as DRS?
The Direct Registration System provides for book entry ownership of securities, registered directly on the books of a transfer agent or issuer. In lieu of physical stock certificates shareholders are provided a statement detailing the number of Direct Registration System shares issued. Through DRS the assets of the registered holder can move electronically to and from the transfer agent and broker dealer. This system prevents the loss of certificates. At any time, a shareholder can request a physical stock certificate to be issued for DRS shares held on the transfer agent’s records at no charge.
