To: Richard S. Gates who wrote (14917 ) 6/4/1999 1:01:00 PM From: David Colvin Read Replies (1) | Respond to
Richard,All securities are held in "street name" for me in the name of the Fidelity Management Trust Company, a division of Fidelity Investments that handles my IRAs for me. Likewise, all cash dividends that come into the account are promptly deposited in my money market "core" account that is also held in the name of the Fidelity Management Trust Company. My name appears nowhere on any of this!have to be made out to me, and only me! They will not send me certificates for "safekeeping" on my part (to be kept in my safe) made out to Fidelity Management Trust Company....no way!all shares are held in street name, Fidelity would get one gigantic set of dividend shares from the transfer agent to disperse on a pro-rata basis into the accounts of all shareholder's qualified to receive the dividend shares. If their holding company were to determine that those dividend shares were "non-qualified" (meaning tradable) securities, Fidelity would have no choice but to send those shares out directly to each respective shareholder (probably in certificate form) and recommend that the shareholders get with their tax accountant and create a paper trail showing that those shares were, in fact, a result of an IRA transaction.....this should keep the IRS off your back. But, since I told him shares were starting to show up in other brokerage's accounts all over the place showing no value, he seemed to be convinced that as long as they showed no value it Fidelity would likely also hold them in their brokerage accounts for their shareholders. The key is apparently the "no value" placed on them. By the way, this rule applies to any brokerage account...not just IRAs.
