nominee account

nominee account
Nominee accounts are set up by stockbrokers and are used for the purpose of administering assets held on behalf of their clients. Nominee accounts have become widespread since the introduction of the CREST system for share settlement.

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   Securities owned by an investor but registered in the name of the brokerage firm are held in nominee account. The certificate bears the name of, and is held in safekeeping by, the brokerage firm. Records of the issuing company show the brokerage firm as the holder of the record. The brokerage firm records the investor as the beneficial owner. Also known as 'street name'.

Financial and business terms. 2012.

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