beneficial owner

Beneficial Owner

A person who enjoys the benefits of ownership even though title is in another name.

Notes:

For example, when shares of a mutual fund are held by a custodian bank or when securities are held by a broker in street name, the true owner is the beneficial owner, even though, for safety and convenience, the bank or broker holds title.

See also: Custodian Bank, In Street Name, Shareholder

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Beneficial Owner

As used for most purposes under the federal securities laws. A beneficial owner of stock is any person or entity with sole or shared power to vote or dispose of the stock. This SEC definition is intended to include a holder who enjoys the benefits of ownership although the shares may be held in another name.

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beneficial owner

The owner of a security registered in another name. For example, investors often leave securities in trust with their brokerage firms. Although the brokerage firm is shown on the issuer's books as the owner of record, the investor is the beneficial owner.