The settlement services that the DTC provides are designed to lower costs and risk and increase the efficiency of the market. ... That means they deposit and hold securities at the DTC, which appear in the records of an issuer's stock as the sole registered owner of those securities deposited at the DTC.

What makes a stock DTC Eligible?

Eligibility requirements include that the securities must be; issued in a transaction registered with the U.S. Securities and Exchange Commission (“SEC”) pursuant to the Securities Act of 1933, as amended (the “Securities Act”); or issued in a transaction exempt from registration pursuant to a '33 Act exemption, that ...

Are DTC shares part of the float?

If an issuer's securities are DTC eligible, it will hold an inventory of free-trading street name shares on deposit. These free-trading shares are also known as the “public float.”