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Plan or DRS holdings...
What is the difference?

Investors still must make ownership decisions even after selecting a company to support. When holding shares through Computershare, a major decision is choosing between maintaining Direct Stock Purchase Plan (or Plan, for short) account enrollment, or an account with 100% DRS holdings. Although these two holding types have many similarities, they also have distinct and nuanced differences. In this article we'll review and source these differences, including sources from the SEC, FINRA, and Computershare websites alongside Computershare's public appearances.

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What causes Confusion?

The most common confusion comes from the term 'book entry' and the fact that Computershare labels DRS holdings as 'book' in the investor center.

Plan and DRS Similarities

Computershare has a specific FAQ section for DSPP which can be found here.

Both Plan and DRS are recorded in your name, and your name is reported to the issuer

SEC Bulletin:
Holding Your Securities

Purchases made through the issuer (or its transfer agent) of securities you intend to hold in DRS are usually executed under the guidelines of an issuer’s stock purchase plan, which uses a broker-dealer to execute the orders. Thus, to hold in DRS once the securities are acquired, you would need to instruct the transfer agent to move the securities from the issuer plan to DRS

Published July 12th 2023

FINRA Bulletin: Know the Facts about Direct Registered Shares

Purchases made through the issuer (or its transfer agent) of securities you intend to hold in direct registration are usually executed under the guidelines of the issuer’s stock purchase plan. You’ll need to instruct the transfer agent to move the securities to the DRS.

Published July 12th 2023

DirectStock Brochure

Computershare FAQ

■ You own book-entry shares if the shares are held in an electronic account at Computershare. A paper certificate was not issued for these shares.
- Direct Registration System (DRS) shares are book-entry shares that are not part of a company’s investment plan.
- Investment plan shares are book-entry shares that are part of a company’s dividend reinvestment plan (DRP) or direct stock purchase plan (DSPP).
■ You own certificated shares if a paper stock certificate is in the account

Last Updated 10/2019

Published July 12th 2023

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