With no paper stock certificates, what guarantees that an investor can get his money if there is catastrophe?

Question

Given that brokerages no longer mail paper stock certificates to investors, how can someone who owns stock be sure they will get their funds out of the market in a calamity (i.e., a computer virus that wipes out all computers/brokerage records)? Although there are insurances for stocks, do the brokerages keep paper records for each client? I have heard of some type of account ("clean....account") that can protect against this risk. What is the answer?

Answer 1

every month print off your brokerage statements and save them. Keep an entire years worth. Also be sure to print off every confirmation of your buys and sells. These are your best defence against having a problem. All disputes with brokerage firms go to arbitration if they can not be mutually reconciled. These are your proof of your side of the case.

Answer 2

it really is really a interest you should study the thanks to play. it ought to take years to noticeably boost, yet a unmarried inventory ought to double in an afternoon and turn 1000 right into a pair grand. there is also short promoting the position you promote a inventory at the same time as it really is severe and purchase it again at the same time as it falls in a short era of time, so that you made a earnings. there's a group of alternative tricks too, i do not play the marketplace myself so i do not recognize a lot about them. some human beings imagine stuff like this should not be legal, yet when it wasn't for this style of making an investment, large agencies doesn't have a fashion of making an investment money on ingenious concepts and start up agencies, like Apple a pair a lengthy time period in the past, doesn't be as large on the instantaneous. also the individuals who play the inventory marketplace are taking extremely large hazards. multiple investors lost each and everything in the course of the recession, yet those are this style of hazards you should be prepared to take to win large. i do not imagine some regulation on making an investment can be a foul element, notwithstanding it really is probable now unlikely to take position. Even lots of the so talked about as socialist regulations through the Democrats in congress have absolutely been extremely corporatist. even if it really is the Republicans or Democrats, lobbyist are continuously going to have extra say contained in the authorities than the overall joe, so we would besides attempt competing contained in the corporate international we stay in, and probably shall we make some change after we've the capacity to make it, if we haven't gotten grasping with capacity.

Answer 3

There are holding agents that are independent of the stock broker that record ownership. You may be mixing two questions, getting paid is different from proving ownership.
I would any dispute regarding ownship is remote. There mulitiple redundant systems that are in different geographic locations and back ups that may be electronic and on tape. And you may have your own records, ie statement and cancelled checks.
Historically there have been major disasters, and back-ups have worked.

Answer 4

all the brokers back up their electronic records every night, including to storage locations far away that are protected against even EMP.

there would be obvious delays if an EMP struck NYC -- and the markets would all be closed for an unknown period after which they'd re-open down a lot. And, what remains of your value would still be there.

Answer 5

If I were you, I'd be sure to keep accurate records on your end. Surely you get a statement (electronically or otherwise) when you first invest or make changes to your portfolio. Keep everything, it may be your only proof in the event of a major disaster.

Answer 6

It's probably not that safe.

Most online brokers will send you certificates for a price.