After understanding how a trade is executed, the next question is about ownership.

When you buy a share of Apple through an online investing platform, where exactly is that share?

To understand this, it helps to walk through how the system is organised.

The central custody system in the US markets

At the core of the US securities system is an organisation called the Depository Trust & Clearing Corporation (DTCC).

DTCC handles the clearing and settlement of securities trades across US markets. In simple terms, it ensures that when someone buys a share and someone else sells it, the exchange of money and ownership happens properly.

Within DTCC sits a subsidiary called the Depository Trust Company (DTC). DTC acts as the central securities depository for US markets.

Almost all publicly traded shares in the United States are ultimately held within this system.

However, there is another layer that often surprises investors.

Most shares inside DTC are registered under a nominee entity called Cede & Co.. This entity acts as the registered holder of the vast majority of publicly traded securities in the US.

Brokerage firms then maintain records of which portion of those shares belongs to which investor.

This structure is known as holding shares in “street name.”

What “street name” ownership means

Under the street name system, the investor’s name usually does not appear directly on the company’s shareholder register.

Instead, the brokerage firm appears as the registered owner, while the investor is recorded as the beneficial owner.

The broker holds the shares within the DTCC system and maintains internal records showing how those shares are allocated to each investor account.

Even though the broker is the registered holder, the investor still retains the economic rights associated with the shares.

This includes:

• Receiving dividends
• Benefiting from price appreciation
• Participating in stock splits and other corporate actions
• Voting on shareholder matters (usually through proxy voting)

The structure exists mainly for efficiency. If every individual investor had to be directly registered each time shares changed hands, settlement would become slow and operationally complex.

The street name system allows markets to handle millions of transactions every day while still preserving investor ownership rights.

Comparing the US system with India’s demat system

Indian investors are already familiar with how share ownership works through demat accounts.

In India, securities are held through depositories such as NSDL or CDSL, and investors appear directly as the registered owners in the depository records.

The US system works in a similar layered way, but with one important difference: the broker appears as the registered holder instead of the investor.

Despite the structural difference, the core principle remains the same.

Investors do not hold physical share certificates. Ownership exists as electronic records maintained within regulated market infrastructure.

Investor protection in US brokerage accounts

The US brokerage system also includes an investor protection framework.

Customer assets held at US-registered brokerages are protected under the Securities Investor Protection Corporation (SIPC).

SIPC protection covers:

• Up to $500,000 per customer account
• Including a $250,000 limit for cash balances

This protection applies if a brokerage firm becomes insolvent and customer assets are missing.

It is important to note that SIPC protection does not cover market losses. If the value of a stock falls, that remains part of normal investment risk.

The protection is designed only for situations where a brokerage firm fails operationally.

Ownership of your US shares on Vested

Now that we understand how ownership works in the US market, the next step is to see how this structure applies when an investor uses Vested.

When you invest through Vested, the platform functions as the broker and provides an investor interface. It provides the mobile app, portfolio dashboard, investing tools, and account access.

So the structure typically looks like this:

Investor → Vested → US clearing broker → DTCC custody system

In this structure:

• Vested provides the investing interface and service layer
• The US clearing broker helps execute trades and maintains the brokerage account
• The securities themselves ultimately is within the DTCC clearing and custody system

Within the broker’s records, shares are allocated to individual investor accounts. Your Vested dashboard simply reflects the holdings recorded in that brokerage account.

So while you see your investments inside the app, the underlying securities are actually held within the regulated brokerage and clearing infrastructure of the US market.