The best answer is D.
DTC (Depository Trust Corporation) safekeeps almost all physical securities certificates for member firms. Physical securities are kept in an airtight "bunker" and computer systems keep track of the "transfer" of these certificates from one owner to another - they are no longer physically moved, unless the customer actually wants delivery of the physical certificate (for which DTC imposes a substantial charge). Once DTC could track change of ownership by computer, the next step was to create a "book entry" registration system for stocks, where there are no more physical certificates (saves time and money).
This is called "DRS" - the Direct Registration System. Because the owner's name is electronically recorded on the books of the transfer agent, payments of dividends and interest are made directly from the transfer agent to the customer/owner. Note, in contrast, that "street name" securities held in margin accounts do not record the owner's name with the transfer agent. In this case, the broker-dealer is the owner of record, and payments of dividends and interest are made by the transfer agent to the broker-dealer. The broker-dealer, in turn, credits each customer that is the beneficial owner of the "street-name" shares