A trust arrangement whereby the beneficial owner of a security has the power to vote on and influence decisions regarding that security, and receives the benefit afforded by the security, even though in street name the security may be held by someone other than the true owner, such as a broker, for safety or convenience reasons.
Definition from Nolo’s Plain-English Law Dictionary
Ownership of the benefits related to property, rather than in the property itself. For example, the beneficiary of trust income has beneficial ownership of that trust. Also, a person may have beneficial ownership of securities, such as voting rights or investment rights, without actually having his or her name on the title of the stocks.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:11 pm