What does “street name” refer to? – T.W., Sioux City, Iowa
Many investors don’t realize this, but these days, most brokerages actually hold any stock you buy in “street name” (their own name) instead of putting the shares in your name and mailing you the certificates. This is routine, and the shares still belong to you. It’s a good system because it permits the shares to be sold more quickly, without your having to find and mail back the certificates. You can learn more about brokerages and find an inexpensive one at broker.fool.com.
MY DUMBEST INVESTMENT
When reading The Motley Fool Stock Advisor newsletter, I noted that both Tom and David recommended Netflix. I had been a successful video-chain owner for more than 10 years and managed to get out of the business just before the brick-and-mortar collapse. It was against my better judgment to buy into Netflix, but I did it anyway. On July 24, I bought at $81.80. The stock immediately started to fall, and when I sold on July 31, I had lost 30 percent of my investment. – D., online
The Fool responds: At The Motley Fool, we generally aim to hang on to our stocks for years, not months or days.
Founded in 1949 by a New Jersey accountant, I now rake in more than $10 billion annually and employ about 57,000 people worldwide. I process close to 48 million W-2 forms annually and provide payroll services for one of every six U.S. workers (some 24 million folks) and 10 million elsewhere. I have more than 600,000 clients, including 26,000 vehicle dealerships served by my automotive division. Who am I? Last Week’s Trivia Answer: PepsiCo
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