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Beneficial Ownership

Beneficial Ownership

  • Term

    Main definition

  • Beneficial Ownership

    Refers to equitable rather than record ownership of securities.

    For purposes of Sections 13(d) and 13(g) of the U.S. Securities Exchange Act of 1934, a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, relationship, or otherwise, has or shares (1) voting power, which includes the power to vote or to direct the voting of, such security; or (2) investment power, which includes the power to dispose of, or direct the disposition of, such security.  The term is commonly used in investment and other transaction documents to encompass most kinds of direct and indirect ownership of securities.

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