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Nominee account |
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Nominee accountAn account in which the named holder holds the assets in it on behalf of another (the beneficiary). In the stock market, the most common use of nominee accounts is where execution-only brokers act as nominees for their clients. The shares are registered in the name of the broker, but the client has beneficial ownership of them. The advantage of nominee accounts is that they make settlement quicker and more streamlined. In theory, dealing costs should be lower. There are some disadvantages: because the individual isn't the registered owner of the shares, he doesn't get sent company reports and accounts, and can't take advantage of shareholder perks, unless his brokers provides a special forwarding service.Similar MatchesStock Exchange Pool NomineeStock Exchange Pool NomineeThe nominee company where all stocks and shares are held during the course of settlement on the London Stock Exchange. Nominee NameNominee NameA name that is used by the Corporation as a generic registered owner on a stock or bond certificate. The use of nominee names makes the processing of security transfers easier. Nominee companyNominee companyA company formed by a bank or other organisation which operates nominee accounts that is, the holding of shares for the beneficial owner. NomineeNomineeA person or firm to whom securities or other properties are transferred to facilitate transactions, while leaving the customer as the actual owner. NomineeNomineeA person or company nominated by another to hold shares on his behalf. The most common use of nominee accounts is where execution-only brokers act as nominees for their clients. The shares are registered in the name of the broker, but the client has beneficial ownership of them. The advantage of nominee accounts is that they make settlement quicker and more streamlined. In theory, dealing costs should be lower. There are some disadvantages: because the individual isn't the registered owner of the shares, he doesn't get sent company reports and accounts, and can't take advantage of shareholder perks, unless his brokers provides a special forwarding service. |
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