What is ‘Safekeeping Certificate’
A document that represents ownership of a security or certificate of deposit. Safekeeping certificates are the investor’s claim against the institution that is holding his or her financial instruments. These documents are most commonly used to facilitate international securities trading and foreign investment; they benefit both the companies and investors who use them.
Explaining ‘Safekeeping Certificate’
Depositary receipts are a common example of safekeeping certificates. These documents often represent ownership of securities issued and traded outside the United States. Depositary receipts can be bought and sold like stocks and can help investors diversify their holdings.
Other methods for investing internationally include purchasing U.S.-traded international stocks, purchasing stock in U.S.-based multinational corporations, and investing in international index funds and foreign country mutual funds through U.S. brokerages. When assets are placed with a broker, a safekeeping certificate is issued.
Further Reading
- A place for safekeeping: Ensuring responsibility, trust, and goodness in the Alliance Digital Repository – www.tandfonline.com [PDF]
- Subscriber financing of telecommunications investment – www.sciencedirect.com [PDF]
- Bank–firm relationships, financing and firm performance in Germany – www.sciencedirect.com [PDF]
- The law and economics of hedge funds: Financial innovation and investor protection – heinonline.org [PDF]
- Islamic Finance—An Overview – link.springer.com [PDF]
- Measuring financial service output and prices in commercial banking – www.tandfonline.com [PDF]
- Embedding Islamic Financial System (IFS) in the curricula of schools in Nigeria – www.infinitypress.info [PDF]
- An overview of Islamic finance – www.worldscientific.com [PDF]
