Definition of "Book-Entry Securities"

These transactions signify securities that are not represented by certificates of ownership, but are simply recorded on customers' accounts. This eliminates considerable paperwork for brokers and safe keeping concerns for investors.

Securities that are registered to an owner without the issuance of a physical certificate. Ownership is reflected by an entry in the issuer's books. This method of registering securities has grown in popularity because investors need not worry about the location of their certificates and it requires less paperwork for a brokerage firm.