Nominee Name

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Nominee Name

A name that is used by the corporation as a generic registered owner on a stock or bond certificate. The use of nominee names makes the processing of security transfers easier.

Nominee Name

The brokerage or other company that is the legal owner of a security held on behalf of a client. Even though the client is the actual owner, the nominee holds title to the security because this makes the legalities of transferring the security easier if and when it is sold. The nominee must turn the security over to the client if requested. The nominee name is also called the street name. See also: Beneficial Ownership, Safekeeping.

Nominee name.

Nominee name is the name that a brokerage firm uses to register ownership of stocks or bonds it holds for investors.

Holding stock in a single generic name, sometimes known as street name, makes it easier to transfer ownership when the securities are traded.

References in periodicals archive ?
While nominee name transactions have benefits, there are also some serious concerns associated with this method of purchase.
The implication is that investment advisors holding clients' accounts in nominee name or street registration could duplicate such an unscrupulous practice.
As can be seen from the literature mentioned, street registration or nominee name security purchases may have major effects.
7%, indicated that the person responding to the survey did not perceive nominee name or street registration to be an issue of concern.
It is intuitive that private, individually held banks with a small number of shares outstanding would have less reason to view nominee name share ownership as a major problem.
Street registration or nominee name registration represents at least two areas that should concern bank management.
The brokerage firm creates a dilemma for the bank because the bank cannot differentiate between shares held by the true owner or shares that are held in nominee names.
First, the study will illustrate the dilemma that is faced by banks as a result of securities issued in nominee names.
Surveys were sent to two hundred and fifty banks in Texas with total assets over seventy-five million to determine their knowledge and/or awareness of this dilemma of nominee names.
One would expect that public companies would have more concern with securities being issued in nominee names.
Brokerage companies that, in many cases, own a significant number of shares of a company or bank actually can cause the company or bank to break the SEC rules regarding disclosure by holding their customers' shares in nominee names.
It is hoped that this study of nominee names, or street registration, will stimulate further study into this potentially harmful practice.