Cede and Company
| Company type | Partnership |
|---|---|
| Industry | Financial services |
| Founded | 1973 |
| Headquarters | New York City , United States |
| Products | Stock certificate transfers |
Cede and Company (also known as Cede and Co. or Cede & Co.) is a specialized financial entity in the United States responsible for handling stock certificate transfers on behalf of the Depository Trust Company (DTC). The DTC functions as the principal securities depository within the U.S. National Market System, which includes major exchanges such as the New York Stock Exchange and Nasdaq. The term "Cede" originates from "certificate depository," with "cede" signifying the act of relinquishing ownership, symbolizing how investors transfer their stock rights to intermediaries.
Legally, Cede holds ownership of the majority of publicly traded U.S. stocks, meaning that investors possess contractual claims through a chain involving Cede rather than holding direct legal title. Securities maintained at the DTC are registered under the nominee name Cede & Co., while brokerage firms maintain records assigning these securities to the accounts of beneficial owners.
As of 1998, Cede held ownership of approximately 83% of all issued U.S. stocks, whereas the remaining 17% were owned by shareholders registered directly through the direct registration system.
History
Established in 1973, Cede was created to streamline the process of transferring stock certificates for the Depository Trust Company. Its name reflects its role as a "certificate depository." The company is headquartered at 55 Water Street, Suite Conc4, New York, NY 10041.
Structure as a partnership
Based in New York City, Cede and Company operates as a partnership consisting of select employees from the Depository Trust Company. It functions as an independent legal entity separate from DTC, which itself is owned by DTC Participants—comprising banks and brokerage firms—not by DTC staff.
The partnership arrangement enables each general partner to approve transfers of stock registered under the partnership’s name without requiring additional corporate resolutions for validation by transfer agents or stock registries.