beneficial owner investment & finance definition
A
person or company who has direct or indirect voting or investment power, according
to the Securities and Exchange Commission. A beneficial owner also is someone
who has the benefits of ownership even though the title might be held in
someone else’s name. For instance, stock certificates may be held in the name
of the brokerage firm, but the beneficial owner is the person who actually owns
the certificate, not the brokerage firm.
See beneficial owner in Wall Street Words
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.
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