DRS or book-entry is the securities industry's preferred method of security ownership and is used for all U.S. Treasury bills, bonds, notes, U.S. government agency securities, and mutual funds. DRS allows you to provide trading instructions in a quick and efficient manner, and lets you avoid the risk of holding a stock certificate that might be lost, stolen, or destroyed. The process to replace a lost paper stock certificate may require you to purchase a surety bond and complete an affidavit, which can be costly and time-consuming—all of which is avoided by using DRS.