Beneficial Owner

An investor who owns stocks indirectly often through a bank or under another “holding” name. A Beneficial Owner is someone who has all of the benefits of owning a property, even though the title is not in their name or their possession. This may be a group of people who are also known as shareholders. The Beneficial Owner may be able to voice opinions and influence business decisions related to that business even though someone else technically owns the title. A property or a company title may be held by either the custodial bank or a broker. This protects the title and makes it more convenient. The Beneficial Owner of a property or a business may enjoy the rewards of ownership without actually having the title in their name. The Beneficial Owner makes the decisions for the property and earns any income that’s generated from the property. By investing in the Beneficial Owner, the broker or custodial bank is also at an advantage. If an investor wants to hold the stock without being responsible for corporate actions and voting, becoming a Beneficial Owner is a feasible option.