Glossary of Municipal Securities Terms


A system for the transfer of ownership of securities through entries on the records of a centralized agency. The centralized agency holds securities on behalf of their owners; when the securities are sold, ownership is transferred by bookkeeping entry from the seller to the purchaser. For municipal securities, book-entry clearance is currently made available through a depository trust and clearing corporation, which holds immobilized securities and acts on behalf of its participants. See: BOOK-ENTRY ONLY; DEPOSITORY TRUST AND CLEARING CORPORATION (DTCC).

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