What is a DRS investor?

An investor is an individual or entity that purchases and holds securities, such as stocks, to earn returns in the form of dividends or capital gains. In the context of DRS, an investor holds shares in electronic form, which can be accessed and managed through a broker or directly through the issuer’s transfer agent.

What is direct registered shares (DRS)?

The application of Direct Registered Shares is widespread across the investment community. Take, for instance, the case of an investor who received direct shares as part of an employee stock purchase program. Through DRS, they efficiently managed their shares without the interference of brokerage fees and felt a closer tie to their company.

What is a dividend reinvestment system (DRS)?

In essence, DRS allows investors to hold their shares in book-entry form, meaning the investor’s name is electronically registered on the books of the transfer agent or the issuer. This system is used not only by those who hold paper stocks but also by those who participate in dividend reinvestment programs (DRIPs).