Nominee Holding (redirected from Holding, Nominee)

Nominee Holding

The act or practice in which a company, usually a brokerage, holds legal ownership of a security while beneficial ownership is held by someone else, usually a client. Nominee holding facilitates trade; that is, the brokerage can sell the security directly rather than needing to seek the client's permission for each transaction. The client receives all dividends and other benefits of ownership. This has become more common as securities have become increasingly digitized.