Canadian Securities Course (CSC) Level 1 Practice Exam 2026 – All-In-One Guide to Master Your Exam Prep!

The correct answer identifies shares registered in street form as shares held in the name of a financial intermediary, such as a bank or investment dealer. This means that the intermediary holds these shares on behalf of the actual beneficial owners, allowing for easier transfer and administration of securities. The beneficial owners maintain their rights to dividends and other benefits, but their names do not appear on the company's books.

In contrast, shares registered in the name of the true beneficial owner refer to shares that are directly registered to the individual or entity that truly owns the shares. This allows the beneficial owners to be recognized directly in the company’s records, providing them with access to shareholder rights without intermediary involvement.

Understanding this distinction is important for investors, as it can affect voting rights, the handling of dividend payments, and overall control over the relevant shares.