nominee holding

Definition

Economics

  • noun shares held in an account by someone who is nominated, especially someone who is appointed to deal with financial matters on the owner’s behalf. Most shares are now held in nominee accounts, especially where computerised share dealing takes place. The disadvantage for the shareholder is that he or she does not see the company reports, and will not be eligible for any shareholder perks. Shares can also be purchased and held in nominee accounts so that the identity of the owner of the shares cannot be discovered.
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