Some issuers in Canada now provide their investors with the option of holding shares electronically through the Direct Registration System (DRS).
DRS provides you with the option of holding your securities on the records of a transfer agent, such as CST, in electronic form. Holdings are represented by a statement that is issued when you establish or subsequently modify your DRS balance. This option removes the traditional costs and risks of holding a paper stock certificate, including the cost of:
- replacing lost or stolen certificates;
- storing certificates; and
- sending securities by mail.
You will continue to enjoy all the entitlements of being a registered shareholder and are free to request a paper certificate at any time. DRS is ideal for an investor seeking an electronic alternative to holding their securities in “street form” through a financial intermediary.