FOX Translator
No data currently available.
No data currently available.
It's time to let you in on a dirty little secret: You may not own the stock you own. That's right, if you invest with a brokerage firm, the shares you bought are almost certainly not held in your name. Technically, they're held in the name of the Wall Street firm you do business with, hence the term "street name."
No, you haven't been robbed. Ultimately, the decision to hold shares on the books under a different name doesn't affect the economic ramifications for you. You¿re listed as the "beneficial owner," even though the firm is the official owner of the shares. But, you are giving up some rights, and investors concerned about good corporate governance might want to get that stock back in their own names.
Here's the problem: If your stock is technically owned by, say, Merrill Lynch, then Merrill Lynch gets to do things with it that might work against your wishes. Take short selling. Investors who want to sell shares short need to first borrow those shares. The lenders are often the big Wall Street firms that are handing out Street-name shares. So, if you feel that a company you own is a victim of aggressive short selling, chances are your own shares are being used to fuel the shorting.
Also, your brokerage firm can cast ballots on some corporate matters affecting a company without getting your input. Technically, this can only happen in votes considered ¿routine¿ by securities regulators. But, there's a big catch: some big events, like board elections, are considered "routine" under law.
The good news is that you can easily fix the Street name problem: Just request that your brokerage firm makes you the listed owner of the shares. If they refuse, find a new firm.
Home / Markets / Industries / Finance
Friday, June 27, 2008
Appeals Court Dismisses Teamsters' Complaint against Dynex Capital, Inc.
Comtex
GLEN ALLEN, Va., Jun 27, 2008 (BUSINESS WIRE) ----Dynex Capital, Inc. (NYSE:DX) today announced that the United States Court of Appeals for the Second Circuit ruled in its favor in the Court's decision in the matter of Teamsters Local 445 Freight Division Pension Fund v. Dynex Capital, Inc., et al. In its opinion, the Court of Appeals sided with the Company in ordering the district court to dismiss the litigation against the Company and its subsidiary, MERIT Securities Corporation, but with leave to replead.
The Court of Appeals found that the Teamsters failed to identify any information that would demonstrate that any of the Company's statements to investors were misleading or that there was any intent to mislead, in connection with the issuance of bonds backed by manufactured housing loans in 1999. The original complaint was filed in February 2005, as a class action suit on behalf of purchasers between February 2000 and May 2004 of MERIT Series 12 and MERIT Series 13 securitization financing bonds. Additional background information on the litigation can be found in the Company's most recent Annual and Quarterly Reports.
Dynex Capital, Inc. is a specialty finance company that elects to be treated as a real estate investment trust (REIT) for federal income tax purposes. Additional information about Dynex Capital, Inc. is available at www.dynexcapital.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding the business of Dynex Capital, Inc. that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of these risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission.
SOURCE: Dynex Capital, Inc.
Dynex Capital, Inc. Alison Griffin, 804-217-5897
Copyright Business Wire 2008
Market Snapshot
| Symbol | Last Price | Netchange | Volume |
|---|---|---|---|
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
| -- | -- | -- | -- |
