Editing Book entry (section)

{{refimprove|date=February 2009}}
'''Book entry''' is a system of tracking ownership of [[security (finance)|securities]] where no [[Stock certificate|certificate]] is given to investors.<ref>See Black’s Law Dictionary 74 (2d Pocket Ed. 2001.)</ref> Several terms are often used interchangeably with "book entry" shares including "paperless shares", "electronic shares", "digital shares", "digital stock certificates", and "uncertificated shares". Some of these terms have somewhat different connotations but, at least in the United States, state securities laws only recognize certificated and uncertificated shares.<ref name=2ways>{{cite web|title=2 Ways to Issue Paperless or Electronic Stock Certificates Including a Free Option |url=https://discover.shareworks.com/startup/2-ways-to-issue-paperless-or-electronic-stock-certificates-including-a-free-option |publisher=Shareworks.com |accessdate=8 December 2021}}</ref>   In the case of book-entry-only (BEO) issues, while investors do not receive certificates, a [[Custodian bank|custodian]] holds one or more global certificates.<ref name=MSRB>{{cite web|title=BOOK-ENTRY ONLY (BEO) or BOOK-ENTRY SECURITY|url=http://www.msrb.org/msrb1/glossary/view_def.asp?param=BOOKENTRYONLY|publisher=Municipal Securities Rulemaking Board|accessdate=13 June 2012}}</ref> [[Dematerialization (securities)|Dematerialized securities]], in contrast, are ones in which no certificates exist; instead, the security issuer, its agent or a [[central securities depository]] keeps records, usually [[electronics|electronically]] of who holds outstanding securities.<ref name=MSRB />

Most investors who use an online [[broker]] or even a regular full-service broker will have their shares held in book-entry form. This is generally convenient, as one does not have to preserve physical stock certificates, and can buy/sell securities without turning certificates in or having new ones issued. Also, replacement costs for certificates are high in case one loses them, while book-entry ownership can never be lost thanks to technological backups.