- agency account managed by a trustee for holding securities, such as stock certificates. A bank, acting as agent, holds in its vaults stock certificates and other securities and returns them at the request of a holder. Safekeeping requires a bank to maintain an itemized record of property in its possession and to issue a receipt for securities held. Distinguish from custody, in which a bank buys, sells, and receives securities when instructed.See also custody account.
- safe deposit box where personal valuables are kept.
- check safekeeping. See also truncation.
storage and protection of assets, valuables, or documents. Some individuals use a bank safe deposit box; others might rely on a bank or a brokerage firm to hold stock certificates or bonds, keep track of trades, and provide periodic statements of changes in position.
storage and protection of a customer's financial assets, valuables, or documents, provided as a service by an institution serving as agent and, where control is delegated by the customer, also as custodian. An individual, corporate, or institutional investor might rely on a bank or a brokerage firm to hold stock certificates or bonds, keep track of trades, and provide periodic statements of changes in position. Investors who provide for their own safekeeping usually use a safe deposit box, provided by financial institutions for a fee.
