By doing this, your name will get put on a shareholder list at the company's transfer agent. That way, whenever they send out materials, you will get a direct mailing from them. Otherwise, if your shares are held through your broker, they won't see your individual position or even know who you are because your stock will get lumped in with the other investors at that brokerage firm. The transfer agent will only see the "street name", that is, the name of your stock broker.
Some time ago, a company I know about had this done for each of their holdings. Now, a regular stream of stock reports, proxy materials, and SEC filings find their way into the corporate mail room, saving the time and effort of calling hundreds of individual investor relations hotlines.
This investment tip can also be used for businesses in which you don't have a major investment but wish to monitor the situation to see if things get interesting in the future. There is also another advantage and that is that many of these stocks offer direct stock purchase and dividend reinvestment plans. By having one share registered with the transfer agent, you are often eligible to buy stock directly from the company, paying extremely low (if any) commissions. in addition, you might be able to have your dividends reinvested at little or no charge, leaving more money in your pocket. These plans are designed so that small investors can increase their equity holdings in a corporation they like but otherwise would find bank fees and commissions eating into their principal.
