Cusip Number Committee on Uniform Securities of Identification Procedures. Used to identify issuer and type of security issued. Is located on stock certificates and other forms. Direct Stock Purchase Plan Direct Stock Purchase Plans allow investors to purchase their 1 st share and every share directly through a company sponsored plan or directly through a company s Transfer Agent. Shares are held in book entry form with a certificate issued upon request.
Plans usually allow for the reinvestment of dividends and additional optional cash investments.
Direct Registration A method whereby shareholders are registered on the books of the corporation in book entry. As opposed to receiving physical certificates the shareholder receives an advice and timely statements. Directly Registered shares can be requested by an investor when purchasing shares through a broker rather then requesting the issuance of a physical certificate. For a investor to make such a request the company for which the investor is purchasing shares must have elected to allow its shareholders to own shares in Direct Registration mode. Other ways in which shares have been issued in direct registration are as a result of spin-offs, stock splits and other corporate actions.