nominee

Nominee

A person or firm to whom securities or other properties are transferred to facilitate transactions, while leaving the customer as the actual owner.

Nominee

A company, usually a brokerage, which holds legal ownership of a security while beneficial ownership is held by someone else, usually a client. Allowing the nominee to hold title to the security 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.

nominee

A person or an organization in whose name a security is registered even though true ownership is held by another party.

nominee

a company or trust which holds FINANCIAL SECURITIES on behalf of a person or other company. Nominees may be professional investment managers who hold portfolios of financial securities on behalf of investors (see UNIT TRUST). Alternatively nominees may be used to buy and hold shares in a particular company on behalf of investors who wish to remain anonymous (often prior to making a TAKEOVER BID for the company). However, UK company law provisions on the DISCLOSURE OF SHAREHOLDINGS make it difficult for a BENEFICIAL OWNER to accumulate large blocks of shares in a company without being forced to reveal his identity. See SHARE REGISTER.

nominee

One who is designated to act for another in a limited sense. It could be a trustee, an agent,or a straw man.