Beneficial Owner

AAA

DEFINITION of 'Beneficial Owner'

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

2. Any individual or group of individuals that, either directly or indirectly, has the power to vote or influence the transaction decisions regarding a specific security.

INVESTOPEDIA EXPLAINS 'Beneficial Owner'

1. 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.

2. Beneficial ownership may be shared among a group of individuals. If a beneficial owner controls a position of more than 5% it must file Schedule 13D under Section 12 of the Securities Exchange Act of 1934.

RELATED TERMS
  1. Stockholders' Equity

    The portion of the balance sheet that represents the capital ...
  2. Securities Exchange Act Of 1934

    The Securities Exchange Act of 1934 was created to provide governance ...
  3. Non-Objecting Beneficial Owner ...

    A beneficial owner who gives permission to a financial intermediary ...
  4. Section 16

    A section of the Securities Exchange Act of 1934 that is used ...
  5. Class Of Shares

    1. Types of listed company stock that are differentiated by the ...
  6. Custodian

    A financial institution that holds customers' securities for ...
Related Articles
  1. Proxy Voting Gives Fund Shareholders ...
    Mutual Funds & ETFs

    Proxy Voting Gives Fund Shareholders ...

  2. Activist Hedge Funds: Follow The Trail ...
    Mutual Funds & ETFs

    Activist Hedge Funds: Follow The Trail ...

  3. Knowing Your Rights As A Shareholder
    Investing Basics

    Knowing Your Rights As A Shareholder

  4. Delving Into Insider Investments
    Options & Futures

    Delving Into Insider Investments

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center