Practical Law Glossary
PRACTICAL LAW
•
Maintained
Beneficial Owner
The beneficial owner of a security generally includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has or shares one or both of the following:
  • Voting power, which refers to the power to vote or direct someone else to vote the security.
  • Investment power, which includes the power to dispose of, or direct someone else to dispose of, the security.
(Rule 13d-3, Exchange Act).
A person or entity may be the beneficial owner of a security even though title to the security may be in another name (commonly referred to as the "street name"). More than one person or persons can be the beneficial owner of a single security. Other facts and circumstances can affect whether a person is considered the beneficial owner of a security. For more information, see Practice Note, Section 13(d) Beneficial Ownership Reporting.
End of Document
Resource ID 8-382-3265Document Type Glossary
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