Dematerialized Financial Glossary

What is it? A term used to describe a physical certificate representing ownership of a security (a stock certificate or a bond) that is held by a trustee. This is an arrangement through which a physical certificate is held so that all future transactions can be conducted as if the security were issued as a book-entry security. Ownership and liens are recorded in the records of the trustee rather than evidenced by physical possession of the certificate. Also called immobilized. Less often, dematerialized is used to refer to book-entry securities that have never been issued in physical form.

Finance Term Definition Added By: Victoria

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